Will Indians Be Shielded From Fuel Price Shock? What Hardeep Puri told NDTV

As the Middle East crisis crosses the 100-day mark, India has so far managed to shield its citizens from the full brunt of surging global energy prices - but the government is walking a tightrope between fiscal pain and political promise.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, in an exclusive interview with NDTV's Senior Executive Editor Aditya Raj Kaul, said the last time fuel prices were raised in India was in February 2022 - nearly four years ago - and even as the current crisis pushed crude oil prices from roughly $70 per barrel to around $94-95 per barrel, the government has not passed on the increase to consumers.

"The Saudi CP, which is the benchmark for LPG, went up by 50%. We did not increase prices," Puri told NDTV, attributing the decision to Prime Minister Narendra Modi's personal conviction about protecting ordinary households from global price volatility. "For him, it's an article of faith - he took the hit on the central budget."

The minister revealed that the central government has, on three occasions - November 2021, May 2022, and most recently - absorbed Rs 10 per litre each on petrol and diesel rather than passing the burden to consumers. This has meant the Finance Ministry effectively underwrote the subsidy, a decision Puri framed as extraordinary political will rather than routine policy.

The numbers tell a striking story of how differently states have handled the same central relief. In BJP-governed states, retail petrol prices hover around Rs 101-102 per litre - in Delhi, Uttar Pradesh, and Gujarat - while in opposition-ruled states the prices are significantly higher: Rs 107 in Tamil Nadu, Rs 110 in Karnataka, Rs 115 in Kerala, and as high as Rs 150 in Telangana. The minister attributed this gap to opposition-run state governments refusing to cut their VAT even when the Centre reduced central excise duties. "Petrol and diesel prices are lower by Rs 10 in BJP-ruled states than they are in others," Puri said pointedly.

The Middle East crisis has complicated India's energy arithmetic in specific ways. Roughly 90 per cent of India's crude imports and nearly 60 per cent of its LPG imports passed through the Strait of Hormuz - a maritime chokepoint now caught in the crossfire of regional conflict. Despite this vulnerability, Puri insisted that no toll has been paid to any party for safe passage, and that shipments through the Strait are continuing. "Have we paid any toll? The answer is categorical. No," he said.

To compensate for the supply squeeze, India has rapidly scaled up domestic LPG production at its refineries - from 32,000 metric tonnes per day to 54,000 metric tonnes per day. The government has also diversified its LPG import sourcing to the United States and Australia, reducing dependence on Gulf routes.

On the broader question of sustainability, Puri was measured but honest. He declined to give a categorical assurance that prices would not rise, saying he had learned as a parliamentarian to choose words carefully. "Any crisis has to have a time context. If it goes on, then it's not a crisis - then you are in depression," he said. He pointed to the United States, where petrol prices have risen 40-50 per cent, and to neighbouring countries where LPG cylinder costs are multiples of India's, as evidence that India's energy management has been comparatively effective.