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New Delhi: The government said on Tuesday there is no plan to increase petrol and diesel prices, rejecting speculation of a hike after the conclusion of polling in West Bengal. "There is no proposal to increase petrol and diesel prices," Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said at a news briefing on West Asia.
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She made the statement while responding to queries on whether retail fuel prices would be revised after the conclusion of Assembly elections in key states. Retail prices of petrol and diesel have remained unchanged for nearly four years, even as global crude oil costs have surged by more than 50 percent over the past two months due to geopolitical tensions in West Asia.
The ministry also addressed reports of panic buying in parts of the country amid rumours of an imminent price hike. "We have seen panic buying in some places. We are in continuous contact with state governments in all these places. All retail outlets are being monitored and supplies are being prioritised (at petrol pumps witnessing increased buying) so that stock availability is ensured and there are no dry-outs," Sharma said.
According to the Petroleum Ministry, demand at certain outlets rose by as much as 30-33 percent. In Andhra Pradesh, speculation over price increases led to panic buying in several towns, with reports indicating that more than 400 petrol pumps ran dry on Sunday due to sudden demand spikes.
The government maintained that fuel availability remains sufficient across the country. "We have enough supplies of LPG, petrol and diesel. Prices are stable and there has been no increase in rates," Sharma said. "I want to urge everyone to please don't believe in rumours. Avoid panic buying and rely on official sources for information," she added.
Officials said inventories of petrol, diesel, LPG and aviation turbine fuel are adequate to meet current demand.
The clarification comes even as state-run oil marketing companies continue to face financial strain due to a widening gap between global crude prices and domestic retail rates. Some estimates peg daily losses at around Rs 2,400 crore as companies sell fuel below market-linked prices.
Last week, Sharma had said that retailers were incurring losses of about Rs 20 per litre on petrol and roughly Rs 100 per litre on diesel, as prices have remained frozen since April 2022 despite rising input costs.
Crude oil, which was around USD 70 per barrel last year, has averaged over USD 114 per barrel this month.
Analysts had earlier indicated that retail prices could rise by Rs 25-28 per litre after elections, given the sustained increase in global oil prices and the widening gap between international and domestic rates.
The surge in crude prices followed the US and Israel’s attack on Iran on February 28 and Tehran’s retaliation, which disrupted flows through the Strait of Hormuz — a key global energy route that handles about one fifth of the world’s oil trade along with significant liquefied natural gas volumes.
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Petrol and diesel prices have been unchanged since early April 2022, despite fluctuations in global crude prices over this period. At present, petrol is priced at Rs 94.77 per litre in Delhi, while diesel costs Rs 87.67 per litre.
When global oil prices declined in previous periods, state-run fuel retailers recorded profits, which helped offset losses during periods of high crude prices.
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