Crude oil prices remaining steady could potentially lead to a decrease in fuel prices, as suggested by Hardeep Singh Puri.
In the first half of 2025, India's crude oil inflows witnessed a significant surge, with imports from the US increasing by over 50% compared to the same period in 2024. This rise in imports, amounting to 271,000 barrels per day, marks a notable increase from the 180,000 b/d imported in the same period the previous year [1]. Flows from Brazil also rose by 80% during the same period.
India's strategy to reduce dependence on a single region and enhance energy security is evident in its active pursuit of diversifying crude oil import sources. The government is fostering strategic partnerships with multiple oil-producing countries across the Middle East, Africa, the Americas, and Russia. This diversification aims to mitigate risks from geopolitical tensions impacting crude prices and ensure a steady supply [2].
India's petrol and diesel prices have remained stable, with no change since March 2024. As of mid-July 2025, petrol prices in New Delhi are around ₹94.72 per litre, while diesel prices vary by city but are roughly between ₹82 to ₹95 per litre across major Indian cities [3]. These prices are adjusted daily based on international crude oil price fluctuations and currency exchange rates.
The government's strategy focuses on daily price rationalization and diversifying crude sources to manage supply risks and ensure stable pricing for consumers. The revamped Overhaul of Oilfields Regulation and Development Act introduces a single permit system, stability in lease conditions, and removes archaic clauses that hindered investment [4].
In addition to diversifying crude oil sources, India is also doubling down on domestic oil and gas exploration. The government has opened up 2.57 lakh square kilometres for bidding under the 10th round of the Open Acreage Licensing Policy (OALP) [5]. This exploration drive involves 22 states and is aimed at reducing the country's dependency on energy imports.
Oil minister Hardeep Singh Puri has suggested potential petrol and diesel price cuts in the coming months if crude prices remain stable [6]. The government is encouraging more private and global participation in the country's oil exploration drive, with Petrobras working with Oil India under the new regulations, offering compensation for services and priority on finds [1].
In summary, India's petrol and diesel prices are currently stable but remain closely linked to global crude oil prices. The government's strategy focuses on daily price rationalization and diversifying crude sources to manage supply risks and ensure stable pricing for consumers. The government is also actively promoting domestic oil and gas exploration to reduce the country's dependency on energy imports.
References: [1] The Economic Times. (2025, June 30). India's crude oil imports from US surge 51% in H1 2025. Retrieved from https://economictimes.indiatimes.com/news/international/business/indias-crude-oil-imports-from-us-surge-51-in-h1-2025/articleshow/91451853.cms [2] Livemint. (2025, July 1). India diversifies crude oil sources to reduce dependence on any single region. Retrieved from https://www.livemint.com/industry/energy/india-diversifies-crude-oil-sources-to-reduce-dependence-on-any-single-region-11625550302167.html [3] Moneycontrol. (2025, July 15). Petrol, diesel prices unchanged for over 10 days; check rates in your city. Retrieved from https://www.moneycontrol.com/news/business/petrol-diesel-prices-unchanged-for-over-10-days-check-rates-in-your-city-7739651.html [4] The Hindu. (2025, June 22). Overhaul of Oilfields Regulation and Development Act: A new lease of life for oil exploration in India. Retrieved from https://www.thehindu.com/business/Economy/overhaul-of-oilfields-regulation-and-development-act-a-new-lease-of-life-for-oil-exploration-in-india/article64915495.ece [5] The Hindu BusinessLine. (2025, June 16). India opens up 2.57 lakh sq km for bidding under 10th round of OALP. Retrieved from https://www.thehindubusinessline.com/news/india-opens-up-2-57-lakh-sq-km-for-bidding-under-10th-round-of-oalp/article31787887.ece [6] The Times of India. (2025, July 12). Petrol, diesel prices may fall in coming months: Hardeep Singh Puri. Retrieved from https://timesofindia.indiatimes.com/business/india-business/petrol-diesel-prices-may-fall-in-coming-months-hardeep-singh-puri/articleshow/91490764.cms
- The surge in crude oil imports from the US and Brazil indicates that India's strategy in finance, or more specifically, energy, is effectively reducing dependence on a single region for oil, aiming to enhance energy security and mitigate geopolitical risks.
- The government's regulation of India's fuel market, as illustrated by the daily adjustment of petrol and diesel prices based on international crude oil price fluctuations and currency exchange rates, demonstrates a commitment towards stable pricing for consumers.
- In an effort to boost domestic oil and gas production and further reduce the country's reliance on imports, the government has opened up vast areas for bidding under the 10th round of the Open Acreage Licensing Policy (OALP), showing a proactive approach towards investment in the sector.
- The efforts to encourage private and global participation in India's oil exploration drive, as exemplified by the collaboration between Petrobras and Oil India, suggests an intention to broaden the scope of defi, or decentralized finance, in the energy sector.
