Union Petroleum and Natural Gas Minister, Hardeep Singh Puri, expressed his comfort with crude oil prices in the range of $75 to $80 per barrel, even as prices recently surged to $90 per barrel, the highest level in the past 10 months.

In an exclusive interview with Moneycontrol, Minister Puri highlighted that if crude prices continue to remain elevated, similar to the current situation, it could lead to a drop in oil demand, much like what occurred last year. He pointed out that high oil prices, combined with the liquidity injected into the market through stimulus packages, could exacerbate inflationary pressures. He cited the precedent of oil prices rising significantly, reaching a tipping point, and subsequently witnessing a decline in demand. Thus, he expressed his comfort with oil prices within the $75 to $80 per barrel range.

Minister Puri had previously urged oil marketing companies to reduce fuel prices when crude was trading at around $75 per barrel in August. However, given the recent resurgence in crude prices, the possibility of a price cut now seems unlikely.