“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. Such news items are designed to create fear and panic amongst the citizens and are mischievous and misleading,” the Ministry of Petroleum and Natural Gas said in a post on X.
A report by Kotak Institutional Equities indicated that petrol and diesel prices in India could see a sharp increase once the ongoing Assembly elections end on April 29. Kotak’s projection of a Rs 25–28 per litre increase is based on crude oil staying close to $120 per barrel.
The government reiterated that India is the only country where petrol and diesel prices have not increased in the last four years.
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Amid the ongoing conflict in the Middle East, the government, along with oil Public Sector Undertakings (PSUs), has taken relentless steps in order to insulate the Indian citizens from steep increases in international prices. “The Middle East crisis has led to an abnormal increase in crude prices,” the ministry said in a recent release, adding that the Centre has reduced excise duty on petrol and diesel by Rs 10 per litre to protect consumers from the price hike.
The global rise in oil prices has been largely caused by the ongoing war between the US, Israel, and Iran that has led to disruptions in the Strait of Hormuz. The crucial passage for energy shipments has been blocked by military interference, causing a hike in prices.
In a statement issued on Wednesday, the government affirmed that all refineries are operating at high capacity with adequate crude inventories, while sufficient stocks of petrol and diesel are being maintained in the country.
It further noted that the government has permitted Oil Refinery companies, including Petrochemical Complexes to make certain minimum quantities of C3 & C4 streams available for critical sectors as determined by Centre for High Technology (CHT).
