With the return of Hardeep Puri to the Petroleum Ministry, policy measures in this sector are expected to continue. The minister has already said that increasing domestic production of oil and gas, promoting green hydrogen and promoting the use of ethanol will be the key priorities of his government.
He also made it clear that profitable government oil companies like BPCL will not be disinvested. In this way, he indicated that the Modi government would like to stay away from any kind of controversy at the beginning of its third term.
He also hinted that fuel will be brought under the ambit of GST. However, this seems far-fetched and if the prices of crude oil fall very fast in the international market, then the prices of fuel will also be reduced.
What needs to be done
Increasing oil production
Encourage private participation in India’s oil and gas exploration and production through tax concessions. The Centre needs to reduce compliance burden, simplify procedures and improve ease of doing business to attract more investments in the sector
Promotion of green fuel
Earlier this year, oil major ONGC received the ministry’s approval to form a subsidiary for its green energy and gas business. This is important from a global perspective where a lot of emphasis is being placed on green energy. Also to ensure a clean environment in the country as the number of vehicles in India is increasing at a very fast pace.
reducing fuel prices
High prices, especially of foodgrains, have been raised by various sections of voters across the country as an issue that needs immediate attention from the government. One of the things the government can do is look at the possibility of reducing fuel prices, especially if international prices have fallen. This will provide immediate relief to consumers from high fuel prices as high fuel prices have a direct impact on the prices of goods.
Hardeep Singh Puri, 72: BJP, Minister of Petroleum and Natural Gas
Experience speaks
IFS Puri, a former Indian Foreign Service officer, took over the oil ministry in July 2021 when the country was in the grip of the pandemic. He is credited with steering the sector smoothly amid a surge in oil demand due to the global energy crisis, at a time when economies of all countries were getting back on track after Covid. The country also bargained for cheap oil from Russia after the Ukraine attack and did not bow to any kind of international pressure.
state Minister
Suresh Gopi, 65 years: BJP
An MP from Thrissur, Kerala, Gopi is also the Minister of State for Tourism.