With more oil flooding markets, energy prices likely to come down globally, says Hardeep Puri

Vijayawada, Andhra Pradesh: Union Petroleum and Natural Gas Minister Hardeep Singh Puri has said with more oil coming up in the global market including from the USA, energy prices are likely to come down which would help tame inflation.

Addressing a press conference, exuding confidence that India has established contacts with the new US administration led by President Donald Trump, Puri said the Indo-American relationship on the energy front will deepen.

According to him India imports oil from as many as 40 countries, including Argentina and since there is enough oil in the world, even oil producing nations which are implementing cutbacks will be compelled to reconsider their decisions.

He also said de-dollarisation of oil purchases was never the objective, emphasising that "most transactions are in dollars and always have been".

"Inside the United States, he (Trump) said, ‘Drill, baby, drill,’ which is a signal to drill more and extract more oil. He has been on record stating that he wants to bring international oil prices down," Puri said.

"So, I think the global energy situation will improve. More energy will enter the market, and hopefully, that will help bring prices down. When energy is available in sufficient quantities at lower prices, it also helps in managing inflation," he further said.

He clarified that India's primary objective is to procure sufficient oil "at lower prices" to help control inflation.

"De-dollarisation is not an objective at all. Most of these (oil) transactions are in dollars and always have been. We had one transaction in rupees, but I think it was a very small one. Transactions in rupees are a good thing, but it takes two to tango," Puri told reporters.

According to the Union Minister, India is already purchasing energy worth up to USD 20 billion from the US, emphasising that Prime Minister Narendra Modi recently had a very successful round of discussions with US President Donald Trump.

Observing that there has never been a shortage of energy in the global market, the former diplomat highlighted that more oil is entering global markets than ever before, especially from the Western Hemisphere.

"Brazil used to produce 3 million barrels of crude per day. They (Brazil) have now started producing an additional 140,000 to 150,000 barrels per day. More oil is coming, much of it from Guyana, Suriname, and Canada. The United States is the world’s largest producer of crude, at 13 million barrels per day. I think they are going to produce 1.6 million barrels more," he said.

Likewise, he said Venezuelan oil will also flow into global markets as ‘the situation’ between the US and the Latin American country is easing.

President Trump, not only during his first tenure in office but also in the run-up to his second election, has been very clear that he wants to bring more energy into the global market, said Puri.

Responding to questions about fuel costs, he said India is the only country where petrol prices have decreased in the past three years, citing excise tax cuts by the Centre in November 2021 and May 2022.

"And BJP-ruled states reduced their VAT. Now, when it comes to benefits, governments don’t benefit. First of all, governments don’t import oil. It is private sector players or oil marketing companies (OMCs) that import oil. And what does the government do with the revenue it collects? It provides 80 crore people with three meals of dry rations a day," he said.

According to Puri, petrol prices rose across several countries between February 2022 and February 2025—by approximately 48 per cent in Pakistan, 14.7 per cent in Bangladesh, 37 per cent in Sri Lanka, 16.2 per cent in Nepal, 14.2 per cent in the USA, 4.8 per cent in Italy, 4.2 per cent in Spain, 2 per cent in Germany, 4.2 per cent in France, while in India, they declined by 0.7 per cent.

Highlighting that petrol prices have decreased both relatively and absolutely, Puri added that diesel prices in India rose at the lowest rate—1.15 per cent—during that period, while they increased across various other countries.

Further, he said subsidised gas under the Ujjwala scheme is supplied at Rs 500 per cylinder, noting that gas connections have increased from 14 crore in 2014, when Modi became Prime Minister, to 33 crore now.