Thrissur, June 18: Union Minister Suresh Gopi has said that fuel prices in India will not come down immediately, even though global crude oil prices have fallen.The fall in crude oil prices came after the Iran-US peace deal. The agreement eased tensions in West Asia and reopened the Strait of Hormuz.
Why Are Fuel Prices Still High?
Suresh Gopi said India has not yet received cheaper crude oil. Oil companies must first transport the lower-priced crude to India. This process takes time. He also said ship traffic through the Strait of Hormuz is increasing after the route reopened. Normal operations may take some time to return.
Crude Oil Prices Fall After Peace Deal
Global oil prices dropped after the Iran-US agreement. Brent crude fell to around $78 per barrel. Investors welcomed the return of stability in the region. However, lower crude prices do not immediately reduce petrol and diesel prices in India.
Centre Absorbed Part of the Burden
Gopi said the central government absorbed part of the impact caused by higher crude oil prices. According to the minister, the Centre lost around ₹12,000 crore while trying to limit the burden on consumers. He also said state governments continued collecting taxes on fuel during the period of higher prices.
AIIMS in Kerala Needs Proper Process
Gopi also spoke about the proposed AIIMS project in Kerala. He said the state government must follow the official process before the Centre can take a decision. Kerala must identify suitable locations and submit them for review. Officials will discuss the project after receiving the required details.
Consumers May Need to Wait
Fuel prices in India may remain unchanged for now.Officials say cheaper crude oil must reach the country before any price reduction becomes possible.Consumers may have to wait a little longer to see the benefit of lower global oil prices.