New Delhi: The government on Thursday brushed aside reports that petrol and diesel prices could be increased by Rs 25-28 a litre after the assembly election process ends, saying no such proposal is being examined. “There are some news reports suggesting a price hike of petrol and diesel. It is hereby clarified that there is no such proposal under consideration by the government,” the Ministry of Petroleum and Natural Gas said in a post on X.
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The denial came after a Kotak Institutional Equities report suggested that fuel prices could rise sharply once polling in states, including West Bengal ends on April 29. The report had projected an increase of Rs 25-28 a litre, assuming crude remains near USD 120 per barrel.
The ministry said the reports were “designed to create fear and panic amongst the citizens and are mischievous and misleading.”
“In fact, India is the only country where petrol and diesel prices haven't increased in the last four years,” said the Petroleum Ministry. “Government of India and oil PSUs have taken relentless steps in order to insulate the Indian citizens from steep increases in international prices.”
Global oil markets turned volatile after US and Israel attacked Iran on February 28, followed by Tehran’s retaliatory action that effectively shut the Strait of Hormuz, a key route linking the Persian Gulf to world markets and carrying roughly a fifth of global oil trade, along with large volumes of liquefied natural gas.
After the conflict escalated, oil prices surged from around USD 70 per barrel to USD 119 before easing somewhat. Renewed tensions have since pushed Brent, the most closely watched crude benchmark, to USD 103-106 per barrel.
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Even with input crude prices rising by more than 50 percent, petrol and diesel prices in India have stayed unchanged. Petrol costs Rs 94.77 a litre in the national capital, while diesel is priced at Rs 87.67.