Amid buzz over fuel price cut ahead of Lok Sabha elections, Oil Minister Hardeep Singh Puri shut down such rumours on Thursday by saying "we don't tell oil companies what to do".
Speaking to Rahul Kanwal, Executive Director, Business Today on the sidelines of World Economic Forum (WEF) 2024 at Davos, Puri said, "I have never subscribed to the theory that an election is a coefficient that determines the price of petrol. Because if that were the case, all 5 years till we get the "one country, one vote" we will go on having elections all the time. No, we don't tell the oil companies what to do. As a government, we can reduce the excise, which we did on two occasions, November 2021 and May 2022."
Puri, however, said a few factors will be taken into account in near future to determine fuel prices.
"Due to excise reduction, oil companies omcs had substantial under recoveries and yet that resulted in the two years, 2021-23, of oil prices in India at the bunk, maybe Japan was another case, coming down while across the world they were increasing. Prime Minister Modi reduced the excise duty even at a time when we were feeding 800 million people three meals of dry ration in a day. Today, I think the oil companies in the last three quarters have done well, their fourth quarter results will be available. So, this speculation which is coming is based on that, but on the other hand if you are talking about uncertainty and oil prices going up by $10-$20, then that is something that would be taken into account but I'm a person who's cautious in these things. Going forward, if this Red Sea (US and UK strikes on Yemen's Houthi rebels triggered fears of further escalation) and other things are turning and if the fourth quarter is also good next year, then maybe the oil companies can think of a situation (price cut)," added Puri at the session powered by Motwani Jadeja Foundation with conglomerate partner Darwin.