New Delhi, May 23 (IANS) The Indian government has effectively managed the impact of global crude oil volatility, maintaining stable fuel availability backed by strong refining capacity and supply systems that have ensured uninterrupted access to petrol and diesel, KPMG International’s Global Head for Energy, Natural Resources and Chemicals (ENRC) Anish De said on Saturday.
In an exclusive interview with IANS, De said recent fuel price increases in India reflect the lag between global crude oil movements and domestic retail adjustments, while stressing that supply conditions remain steady across the country.
“There has been a roughly Rs 5 per litre increase in petrol and diesel prices, which is significantly lower compared to the nearly 70 per cent rise in crude oil prices globally,” De said.
He added that further price adjustments cannot be ruled out if crude prices remain elevated.
“If oil continues to stay high, there is every possibility of further hikes,” he said.
“Approximately 25 per cent of the losses would have been covered through recent price increases. Around 75 per cent is still being borne by the companies,” he said, pointing to continued under-recovery in fuel pricing.
However, he emphasised that India does not face any fuel shortage concerns at either the wholesale or retail level.
“There is no shortage of crude availability in global markets, and India has sufficient refining capacity. Supply is not an issue,” he said.
Responding to reports of fuel outages at some retail outlets, De clarified that he was not aware of specific cases and said such details are best addressed by oil companies.
“I don’t monitor those operational specifics,” he said.
On the broader pricing dynamics, he noted that fuel price changes typically follow global crude movements with a delay, leading to temporary cost absorption by companies.
“The recent hikes came several weeks after crude prices increased. There is still a significant gap in cost recovery,” he said.
Asked about the impact of geopolitical tensions in West Asia and potential rollback of fuel prices if global crude moderates, De said pricing decisions remain with companies.
“These are decisions for companies to take. My view is that a lot of pent-up recovery is still pending,” he said.
On taxation and policy, De said bringing natural gas under the Goods and Services Tax (GST) framework should be a priority before extending it to petrol and diesel.
“In my view, natural gas should be brought under GST as soon as possible. Petrol and diesel can follow later,” he said.
He further stressed that India’s fuel supply system remains robust, supported by strong refining infrastructure and adequate global crude availability, ensuring stability even in a volatile international environment.
–IANS
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