Union Minister of State for Petroleum and Natural Gas Suresh Gopi said on Sunday, 14 June that any revision in domestic prices of petrol, diesel, and LPG would be contingent on the availability and stability of crude oil supplies in the global market. Gopi made the remarks while speaking to reporters in Thrissur district, Kerala, signalling that the Centre is in a wait-and-watch mode on fuel pricing.

What the Minister Said

'Let us see the supply of crude oil. We have the minister concerned, Hardeep Singh Puri. Let it come,' Gopi said in response to questions on the possibility of a price revision. He added that assessments would be made based on the flow of crude oil supplies and the broader energy situation.

Separately, Petroleum and Natural Gas Minister Hardeep Singh Puri had on Saturday said in Ludhiana that the geopolitical conflict involving Iran, the United States, and Israel had intensified challenges in the petroleum sector and contributed to a rise in petrol prices. Puri, however, maintained that the Central government had taken steps to ensure citizens are not severely impacted by the global price surge.

The Strain on Public Sector Oil Companies

State-run oil marketing companies — Indian Oil, Bharat Petroleum, and Hindustan Petroleum — are currently absorbing losses to shield consumers from the global oil price spike. According to officials, the under-recoveries of these marketing firms stand at approximately ₹600 crore to ₹750 crore per day on the sale of petrol, diesel, and domestic LPG. Despite recent retail price increases, the gap between global crude costs and domestic pump prices remains a significant financial burden on these firms.

Hormuz Strait and the Iran-US Peace Deal

There is, however, a potential relief on the horizon. Reports indicate that a US-Iran peace deal is close to being finalised, which could lead to the reopening of the Strait of Hormuz — a critical maritime corridor through which approximately 20 per cent of the world's oil and gas exports transit. Any resumption of unhindered shipping through the strait is expected to ease global energy prices. A blockage of the waterway has historically triggered sharp spikes in crude prices worldwide.

India's Alternative Sourcing Strategy

To manage supply disruptions, India has been diversifying its crude oil import sources. The country has ramped up purchases from Venezuela and African nations including Nigeria and Angola. Imports from Russia have also been significantly increased — in May, India emerged as the second-largest importer of Russian oil globally, trailing only China. This multi-source strategy reflects the Centre's effort to insulate domestic supply chains from geopolitical volatility.

With global crude markets in flux and a potential diplomatic breakthrough in the Iran-US standoff, the government's next move on fuel prices will be closely watched by consumers and the energy sector alike.