‘Designed to create fear’: Petroleum ministry rejects reports of price hikes in petrol and diesel

The Ministry of Petroleum and Natural Gas on Wednesday said there is no plan for price hikes of petrol and diesel, dismissing reports suggesting the government may raise rates by ₹25-28 a litre after assembly elections. 

“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," the ministry said in a post on X. 

According to PTI, the clarification came in response to a report published by Kotak Institutional Equities that suggested petrol and diesel prices may increase after the conclusion of the assembly elections in states like West Bengal and Tamil Nadu.    

Kotak Institutional Equities estimates fuel prices could rise by ₹25–28 per litre if crude oil remains around $120 per barrel. 

‘Designed to create fear’ 

Rejecting the price hike report, the ministry described it as “mischievous and misleading”. “Such news items are designed to create fear and panic amongst the citizens and are mischievous and misleading,” it said.  

No price hike on petrol, diesel in last 4 years 

Going further, the petroleum ministry said India is the only country that didn’t see price hikes in petrol and diesel in the last four years. “In fact, India is the only country where petrol and diesel prices haven’t increased in the last four years. Govt of India and Oil PSUs have taken relentless steps in order to insulate the Indian citizens from steep increases in international prices,” the ministry said. 

West Asia war leads to oil price hikes 

International oil prices jumped after the US and Israel attacked Iran on February 28, followed by a strong response from Tehran. The conflict disrupted the Strait of Hormuz, a key route that connects the Persian Gulf to global markets and carries about one-fifth of the world’s traded oil, along with large volumes of liquefied natural gas. 

After the conflict began, oil prices rose sharply from around $70 per barrel to $119, before easing slightly. Fresh tensions have again pushed Brent crude, the global benchmark, to about $103–106 per barrel. 

Although crude oil prices have increased by more than 50%, petrol and diesel prices in India have not changed. Petrol is selling at ₹94.77 per litre in Delhi, while diesel is priced at ₹87.67 per litre.