Fuel prices will not increase, says Oil Minister Dharmendra Pradhan

NEW DELHI: Oil companies aren’t currently considering petrol or diesel price hikes as they don’t see the flare up in Iraq violence to hit India’s crude imports, Petroleum Minister Dharmendra Pradhan said on Friday.

“As of today, oil prices are not going to increase,” he said. “There is no need to panic as the Basra area that supplies to India is safe.”

The price India’s crude-oil basket has risen $5 a barrel to $112 in the past few days. International prices have risen on fears that the Islamic militants who have taken control over tracts of northern Iraq could disrupt supplies from the Middle Eastern nation.

Meanwhile, Pradhan said the government has asked oil marketing companies to prepare contingency plans. “We have asked them to source more crude from existing linkages other than Iraq and also procure more from spot term markets.”

He said crude supply from Iraq hasn’t stopped and state-run oil marketing companies have already lifted 45% of the annual contracted quantity from that country.