Amid rising crude oil prices and speculation of a post-election hike, the government on Tuesday said there is no plan to increase petrol and diesel prices after polling ends in West Bengal on April 29.
The assurance comes even as global oil markets remain volatile and fuel retailers face mounting losses.
The clarification follows reports of panic buying in parts of the country, especially Andhra Pradesh, where rumours of a price hike led to long queues at petrol pumps.
More than 400 fuel stations reportedly ran dry on Sunday, with demand rising by as much as 30–33 per cent at some outlets.
“We have seen panic buying in some places. We are in continuous contact with state governments,” said Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas.
“All retail outlets are being monitored and supplies are being prioritised so that stock availability is ensured and there are no dry-outs,” she said.
Dismissing speculation, Sharma made it clear, “There is no proposal to increase petrol and diesel prices.”
She also urged the public not to rely on rumours. “I want to urge everyone to please don’t believe in rumours. Avoid panic buying and rely on official sources for information.”
According to the government, the country has adequate stocks of petrol, diesel, LPG and aviation turbine fuel to meet demand.
“We have enough supplies of LPG, petrol and diesel. Prices are stable and there has been no increase in rates,” she said.
The government’s position comes despite growing financial strain on state-run oil companies, which are selling fuel below market rates.
Officials say losses are significant, with estimates suggesting daily losses of around Rs 2,400 crore.
Earlier, Sharma had said oil firms were losing about Rs 20 per litre on petrol and nearly Rs 100 per litre on diesel.
Global crude prices have surged sharply over the past two months, rising more than 50 per cent amid tensions in West Asia.
Prices spiked after US and Israeli strikes on Iran on February 28 and Tehran’s retaliation, which disrupted movement through the Strait of Hormuz, a key route that handles nearly a fifth of the world’s oil trade.
Crude, which was around USD 70 per barrel last year, has averaged over USD 114 this month.
Despite the surge, retail fuel prices in India have remained unchanged since early April 2022.
Petrol currently costs Rs 94.77 per litre in Delhi, while diesel is priced at Rs 87.67.
While oil companies earlier balanced losses with profits during periods of lower crude prices, the current gap between global and domestic rates has widened sharply.