Can petrol and diesel rates rise? What govt sources say

Can petrol and diesel retail prices rise going forward on account of tensions in the Middle East? Government sources have denied reports suggesting a possible increase in retail petrol and diesel prices, stating that there is no plan to raise fuel rates in the country. The clarification follows speculation about a potential hike following volatility in global crude markets and disruptions linked to tensions in West Asia.

There is no likelihood of any increase in petrol and diesel retail prices at present, said one of the sources.

Petrol and Diesel Prices | What government sources said

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Officials noted that the central government has reduced central excise duty on petrol and diesel three times in recent years == in November 2021, May 2022 and March 2024. These steps, they said, were aimed at easing the burden on consumers despite fluctuations in international energy markets.

Sources also highlighted that retail petrol and diesel prices in the country remain among the lowest globally, particularly when compared with several neighbouring countries as well as parts of Europe.

While some neighbouring nations and European countries have raised fuel prices in response to global crude movements, India has not implemented similar increases, said the officials.

Over the past few days, benchmark oil rates clinched one of their strongest surges in years amid geopolitical tensions in the Middle East, including disruptions around the Strait of Hormuz -- a key global oil transit route that one-fifth of the world's oil and gas supplies pass through.

Authorities have said that they are continuously monitoring the situation in the region while domestic fuel supply and pricing remain stable.

Petrol and Diesel Rates | What IOCL, BPCL and HPCL earlier said

This week, state-run oil marketing companies Indian Oil Corp Ltd (IOCL), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petrol Corp Ltd (HPCL) -- which often make adjustments in the retail prices of petrol and diesel -- requested the public not to purchase petrol and diesel in a hurry. All three dismissed what they described as rumours about fuel shortages in the country.

Earlier, the central government stated that India continues to be in a comfortable situation when it comes to oil supplies, with adequate quantities of petrol and diesel in its reserves.

Authorities assured the public that the retail rates that they bear for both fuels may not be impacted due to disruptions in the Strait of Hormuz that have impacted energy benchmarks. India sources nearly 40 per cent of its oil imports from the region.

IOCL dismissed reports circulating on social media about a shortage of petrol and diesel in the country as baseless, urging citizens not to panic or crowd fuel stations. The PSU said fuel inventories across the country remain adequate, with supply systems functioning normally.

IOCL also said it remains committed to maintaining an uninterrupted supply across the country.