New Delhi, April 23
State-owned fuel retailers are incurring losses on petrol and diesel sales as retail prices have remained unchanged for nearly four years despite a sharp rise in global crude oil prices, the government said on Thursday, adding that there is no immediate plan to revise rates.
The Ministry of Petroleum and Natural Gas dismissed reports suggesting a possible increase of Rs 25 to Rs 28 per litre after the assembly elections and said no such proposal is under consideration. Officials maintained that the focus has been on keeping fuel prices stable even as international markets remain volatile.
At a media briefing, Joint Secretary Sujata Sharma said global crude oil prices have increased significantly in recent months. “There is a huge increase in crude prices, yet the government has not raised retail fuel prices and the effort has been to keep them stable,” she said. She said crude oil, which was around USD 70 per barrel last year, has averaged above USD 113 this month. Despite this increase, petrol and diesel prices in India have remained unchanged since early April 2022.
Sharma said the rise in international prices, especially following tensions in West Asia, has resulted in under recoveries for public sector oil companies. “The under recovery may be around Rs 20 per litre on petrol and around Rs 100 per litre on diesel,” she said. She added that the government has taken measures such as reducing taxes on petrol and diesel by Rs 10 per litre and imposing export duties on fuel to ensure adequate domestic supply and shield consumers from global price fluctuations.
On cooking gas, she said international benchmark prices have risen sharply while domestic LPG rates have declined, reflecting efforts to protect consumers. Officials said India continues to rely heavily on imports to meet its oil demand, making it sensitive to global price movements. They reiterated that maintaining stable retail fuel prices remains a priority.
The government also said reports indicating a sharp increase in fuel prices are misleading and intended to create unnecessary concern. It said steps will continue to be taken to ensure price stability while monitoring global developments.
