Govt denies petrol, diesel price hike; calls it 'fake and mischevious'

The Ministry of Petroleum and Natural Gas on Thursday denied reports suggesting a possible hike in petrol and diesel prices after state elections. It said that the government is not considering any such proposal.

Responding to media reports, the Ministry said that such news items are "fake" and meant to create fear and panic among the citizens. 

"FAKE NEWS. 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 said in a post on X. 

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It further reiterated that India is the only country where petrol and diesel prices have not gone up in the last 4 years. "Govt of India and Oil PSUs have taken relentless steps in order to insulate the Indian citizens from steep increases in international prices."

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Where did the claim come from?

A brokerage said in a note that petrol and diesel prices in India could see a sharp rise of ₹25-28 per litre after the ongoing state elections, as elevated crude oil prices begin to strain the country's fuel pricing system.

Crude oil prices have also remained elevated due to supply constraints triggered by the ongoing disruptions in the Strait of Hormuz, a strategically vital waterway. It mentioned that the current pause on fuel price hikes is becoming unsustainable, with state-backed oil marketing companies (OMCs) absorbing significant losses. 

Despite global uncertainties, petrol and diesel prices in India have remained unchanged. In Delhi, petrol price remains stagnant at ₹94.77 per litre whereas in Mumbai, it continues to stay at ₹87.67 per litre.