Global Oil Supply Surge Expected to Lower Energy Prices: Union Minister Hardeep S Puri

Vijayawada,India   – Union Petroleum and Natural Gas Minister Hardeep S Puri has expressed optimism that the increasing global oil supply, particularly from the United States, is set to bring down energy prices, thereby aiding inflation control.

Speaking at a press conference, Puri underscored India's strengthened energy ties with the U.S. under President Donald Trump's administration. He asserted that as India imports oil from around 40 countries, including Argentina, the global oversupply could compel oil-producing nations implementing production cuts to reconsider their strategies.

Puri dismissed speculation about de-dollarisation in oil transactions, reaffirming that “most transactions are in dollars and always have been.” He cited Trump’s pro-drilling stance in the U.S. as a signal for increased oil extraction, which is expected to ease global supply constraints. “The global energy situation will improve with more oil entering the market, leading to price reductions. Lower energy costs will also help in managing inflation,” he stated.

India’s primary objective, according to the minister, remains securing oil at competitive prices to maintain economic stability. “De-dollarisation is not a priority. While we had one rupee-denominated transaction, it was minimal. Transactions in rupees are a positive step, but they require mutual agreement,” he noted.

Highlighting India's growing energy imports from the U.S., which are valued at approximately $20 billion, Puri pointed to recent high-level discussions between Prime Minister Narendra Modi and President Trump as a sign of deepening bilateral cooperation in the sector.

The minister also emphasized the surge in global oil production, particularly from the Western Hemisphere. “Brazil, which once produced three million barrels of crude per day, has increased output by 140,000 to 150,000 barrels per day. Additionally, significant contributions are coming from Guyana, Suriname, and Canada,” he explained. The U.S., as the world’s largest crude producer, is expected to increase output by 1.6 million barrels per day, while easing geopolitical tensions with Venezuela could further boost supply.

Puri reiterated that Trump’s commitment to expanding energy production—both during his first tenure and in his re-election campaign—signals further market stabilization.

On domestic fuel pricing, Puri highlighted that India remains the only country where petrol prices have decreased over the past three years, citing excise duty reductions in November 2021 and May 2022. He noted that BJP-led state governments had also cut Value Added Tax (VAT) to provide relief to consumers.

“The government does not directly import oil. It is procured by private players and oil marketing companies (OMCs). The revenue collected from fuel taxes supports essential welfare initiatives, such as providing dry rations to 800 million people,” he explained.

Citing global fuel price trends, Puri compared petrol price hikes across several nations between February 2022 and February 2025. Prices rose by 48% in Pakistan, 14.7% in Bangladesh, 37% in Sri Lanka, 16.2% in Nepal, 14.2% in the U.S., 4.8% in Italy, 4.2% in Spain and France, and 2% in Germany. In contrast, India saw a marginal decline of 0.7%. Diesel price hikes in India, at 1.15%, were also among the lowest globally.

Further, Puri highlighted the expansion of the government’s flagship Ujjwala scheme, under which subsidized cooking gas is provided at ₹500 per cylinder. He noted that the number of LPG connections has risen from 140 million in 2014, when Prime Minister Modi took office, to 330 million at present.

With global energy markets witnessing shifts in supply and demand dynamics, India remains focused on securing affordable and stable fuel prices, the minister concluded.