Ministry of Petroleum Dismisses Fuel Price Hike Reports as Fake News Amid Global Volatility

Highlighting India’s unique position in the global energy landscape, the ministry stated that the country remains a global exception, noting that India is the only nation where petrol and diesel prices have not increased over the last four years. The government underlined its proactive efforts to shield domestic consumers from international energy shocks, particularly those triggered by ongoing geopolitical tensions that have significantly inflated international crude oil prices. The ministry emphasized that both the Government of India and public sector oil companies have undertaken "relentless steps" to protect citizens from the steep increases observed in the international fuel market.

These measures were particularly crucial when crude prices surged by 62% in a single month for Indian refiners. To cushion both consumers and oil companies from this sharp spike, the Centre intervened by cutting excise duty on petrol and diesel by Rs 10 per litre each. This intervention occurred even as fuel retailers, including Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum, were incurring substantial losses of approximately Rs 24 per litre on petrol and Rs 30 per litre on diesel. To offset these revenue losses, the government strategically imposed export duties of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel, alongside the introduction of a windfall tax.

According to statements by Union Finance Minister Nirmala Sitharaman, these fiscal maneuvers were aimed at ensuring stable domestic prices despite the pressures of global volatility, even as the actions created a significant fiscal burden for the state. While officials noted that the excise cut resulted in revenue losses exceeding Rs 7,000 crore, the implementation of the export tax served to partly compensate for the deficit. This comprehensive strategy underscores the government's resolve to prioritize economic stability and consumer protection against the backdrop of an unpredictable international energy sector.