New Delhi: The government has clarified that there is no proposal to increase retail prices of petrol and diesel after the conclusion of state elections, countering recent media reports suggesting a possible hike.
The clarification was issued by Sujata Sharma during a briefing on developments in West Asia. Officials said no such move is currently under consideration.
Authorities also assured that fuel inventories—including petrol, diesel, LPG, and aviation turbine fuel—are sufficient to meet domestic demand. Supply is being closely monitored in coordination with state governments.
Panic buying reported in some regions
In certain areas, particularly Andhra Pradesh, panic buying led to a surge in demand by 30–33% at some outlets. This caused temporary shortages at over 400 fuel stations. The government said supply is being managed to prevent further disruptions.
Retail fuel prices in India have remained unchanged since April 2022, despite fluctuations in global crude markets.
Rising crude prices, mounting losses
Global crude oil prices, measured by Brent crude oil, have risen from an average of around $70 per barrel last year to over $114 per barrel recently amid tensions in West Asia.
Despite this, domestic fuel prices have not been revised. Public sector oil marketing companies are currently selling fuel below cost, with estimated losses of about ₹20 per litre on petrol and ₹100 per litre on diesel. Daily losses are pegged at around ₹2,400 crore.
Gas allocation adjusted, industry impact
To prioritise domestic consumption, the government has reduced natural gas allocation for commercial users. Sectors like textiles and handicrafts will receive about 80% of their average gas consumption over the past six months.
State-run GAIL is sourcing additional gas from the spot market if required. Meanwhile, the textiles ministry has sought changes in customs and anti-dumping duties on certain raw materials, including man-made fibre inputs, to ease pressure on the sector.
Officials reiterated that despite financial strain, there is no immediate indication of a fuel price revision.
