Govt. Dismisses Rumours on Hike of Petrol and Diesel Prices Post Assembly Elections
The clarification came after a report by Kotak Institutional Equities hinted of a steep increase in petrol and diesel prices once the polling for assembly elections in states like West Bengal ends on April 29.
New Delhi: Dismissing the rumours on the hike of petrol and diesel prices post assembly elections, the government on Thursday signalled that there is no such proposal under consideration. The statement of the government comes after there are several reports saying that there is a potential hike of Rs 25-28 per litre in petrol and diesel prices after state assembly polls.
Clarifying the reports, the ministry of petroleum and natural gas (MoPNG) said in a post on X that state-owned fuel retailers are incurring losses of about Rs 20 per litre on petrol, and roughly Rs 100 per litre on diesel as pump prices remain frozen for nearly four years despite a surge in global oil prices. “There is no immediate plan to raise retail fuel rates and no such proposal under consideration by the government,” it said.
The clarification came after a report by Kotak Institutional Equities hinted of a steep increase in petrol and diesel prices once the polling for assembly elections in states like West Bengal ends on April 29. Kotak projected about Rs 25-28 a litre increase in price based on crude oil staying close to $120 per barrel. “Such reports are designed to create fear and panic amongst the citizens and are mischievous and misleading,” the ministry said.
At the media briefing on developments in West Asia, Sujata Sharma, joint secretary in MoPNG, also said that international prices of crude oil in which raw material used to make fuel like petrol and diesel and LPG rates have been very volatile, yet the government has not increased prices. “Crude which was $70 per barrel last year, averaged over $113 this month,” Sharma said.
“Despite the a huge jump in crude prices, the government has not increased prices after the Middle-East war and there has been no increase in petrol and diesel prices since April 6, 2022 as well. I urge people not to believe rumours amid concerns over supply disruptions due to the ongoing West Asia crisis,” she said.
Sharma also said that the government has taken multiple steps to maintain price stability during the crisis time. “In fact, the government has taken several steps to maintain price stability. Excise duty on petrol and diesel was reduced in 2022, prices were cut again in 2024, and on March 27, 2026. Excise duty was cut by Rs 10 once again and the objective has been to keep domestic prices stable despite rising global prices,” she said
The joint secretary also said that the sharp increase in prices in international markets, on which India is 88 per cent dependent to meet its oil needs, has led to PSUs incurring under-recoveries on petrol and diesel. “Under-recovery may be around Rs 20 per litre on petrol and around Rs 100 a litre on diesel,” she said.
On cooking gas LPG, she also said that while the Saudi CP -- the benchmark for LPG pricing -- has increased 102 per cent between July 2023 and April 2026, rates in the country have fallen 17 per cent. “Data is speaking for itself and the effort of the government is also visible,” she said.
