The government on Thursday clarified that there is no plan to increase retail prices of petrol and diesel, even as oil refiners face losses amid volatile crude prices triggered by the West Asia conflict.
Government Stance on Fuel Prices
Sujata Sharma, joint secretary in the petroleum and natural gas ministry, stated that the government has kept pump prices stable despite oil marketing companies incurring under-recoveries of approximately Rs 20 per litre on petrol and Rs 100 per litre on diesel. She highlighted that in March, the excise duty on auto fuel was reduced by Rs 10 per litre to prevent the burden of rising crude prices from being passed on to consumers.
"There has been no hike in the prices of petrol and diesel since April 6, 2022. Rather, excise duty was cut in 2022, and prices were reduced in 2024. On March 27 this year, the government again reduced excise duty by Rs 10 per litre on petrol and diesel to keep prices stable in the domestic market," Sharma said. She added that the government has also imposed a tax on fuel exports to "motivate" refiners to prioritise domestic sales.
Dismissal of Price Hike Rumors
Earlier in the day, the petroleum ministry dismissed reports suggesting a price hike in petrol and diesel after the assembly elections, stating that no such proposal is under consideration. The ministry termed the reports "mischievous and misleading" and said they were "designed to create fear and panic."
This assurance comes amidst ongoing concerns over global oil price volatility and its impact on domestic fuel costs. The government's measures aim to shield consumers from international market fluctuations while ensuring stable supply.
