Minister of Petroleum and Natural Gas, Hardeep Singh Puri, emphasized the critical need for stability and predictability in energy prices amidst the ongoing volatility in crude oil markets due to supply cuts by major oil-producing nations.

Addressing the CNBC-TV18 India Business Leader Awards (IBLA) 2023, Puri highlighted the impact of deepening oil supply cuts by the Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+), resulting in a sharp decline in crude prices.

Puri underscored the global economic scenario, stating, “With half the world facing or flirting with recession, any surge in oil prices would dampen demand.” He highlighted the necessity for price stability to maintain consistent market demand.

Following OPEC+’s announcement on December 1 to voluntarily curtail oil production by nearly 1 million barrels per day by early 2024, crude oil prices fell. The benchmark Brent crude dropped to $82.83 a barrel, and West Texas Intermediate (WTI) slipped to 0.26 percent.

Acknowledging the role of oil marketing companies (OMCs) as responsible corporate entities, Puri commended their resilience during periods of soaring crude prices. He revealed that OMCs had incurred substantial losses, particularly in LPG (liquefied petroleum gas), totaling Rs 28,000 crore, with the government providing a subsidy of Rs 22,000 crore to offset these losses. Puri noted that OMCs have since returned to profitability.

Highlighting a positive trend, Indian refiners recorded a consolidated net profit of Rs 27,295 crore in the second quarter of FY24 after facing earlier losses.

The CNBC-TV18-organized Indian Business Leader Awards (IBLA) celebrated exceptional leaders and visionaries within India’s business landscape. The event served as a prestigious platform, bringing together influential figures, policymakers, and industry leaders to acknowledge and honor excellence within the Indian business community.