No proposal to cut fuel prices, says Hardeep Singh Puri; OMC stocks rise up to 3%

Union Petroleum Minister Hardeep Puri said on Wednesday that there’s no proposal to cut fuel prices and that media reports are ‘speculative’. Following his remark, stock prices of oil marketing companies jumped sharply with Hindustan Petroleum Corporation Ltd (HPCL) rising over 3%, BPCL and IOCL scrips rising 1.6% and 2%, respectively.

“No discussion with oil marketing cos on fuel price cuts, we want stable & positive forward looking situation in terms of pricing,” said Puri.

Last month, quoting government sources, Business Today TV reported that Centre is considering a cut in the prices of petrol, diesel soon and that the reduction is likely to be in the range of Rs 4-Rs 6 per litre.

OMCs kept supply of fuel constant despite huge rush at petrol pumps, said Puri about the recent protests by truck drivers against the new hit-and-run law.

Puri said that India will buy Venezuelan oil, adding that Indian refineries are capable of processing the heavy oil from the South African country.

Speaking to reporters at an event, Puri stated that New Delhi is willing to resume oil import with any nation that is not under sanction.

“India will buy Venezuelan oil. Many of our refineries including one in Paradip are capable of processing heavy oil from Venezuela. We are willing to resume (oil import) with anyone who is not under sanction,” he had said.

“We are in a situation where we are using crude oil 5 million barrels/ per day. And it is increasing every day. If Venezuela oil comes to market we will welcome it,” he added.

India last imported Venezuelan crude in 2020 when the US imposed secondary sanctions on the South American nation. US imposed harsh sanctions on Venezuela to punish Maduro’s government following his 2018 re-election.

Indian refiners have already resumed Venezuelan oil purchases, with Reliance Industries, Indian Oil Corp and HPCL-Mittal Energy securing cargoes of Venezuelan oil after the United States lifted sanctions in October.

India is the world’s third-biggest oil importer and consumer, shipping over 80% of its oil needs from overseas. It wants to cut its crude import bill and is looking to expand its refining.

India is willing to buy oil from any country that is not sanctioned, the minister added.

He also said some Indian money is locked up in Venezuela, referring to Oil and Natural Gas Corp, which has more than $500 million in dividends pending since 2014 for its stake in Venezuelan projects.