India's Petroleum Ministry Denies Reports of Petrol, Diesel Price Hike
Government calls fuel price increase rumors "fake news," affirms no such proposal under consideration
Auf einen Blick
- India's Ministry of Petroleum and Natural Gas has dismissed reports of a possible petrol and diesel price hike as "fake news" designed to create panic among citizens.
- The ministry stated that no such proposal is under consideration and highlighted that India remains the only country where fuel prices have remained unchanged for four years.
- The government has taken measures including excise duty cuts of Rs 10 per litre to shield consumers from global energy shocks.
KI-generierte Zusammenfassung
Warum es wichtig ist
The Indian government has maintained stable fuel prices for four years despite global crude oil price volatility. The article references measures taken during a period when international crude prices surged 62% in a month, prompting the government to cut excise duties and impose export duties to protect both consumers and oil marketing companies.
The ministry of petroleum and natural gas on Thursday dismissed reports of a possible hike in petrol and diesel prices, calling them "fake news" and aimed at creating unnecessary panic among citizens. In a post on X, the ministry said, "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 further warned that such reports are "designed to create fear and panic amongst the citizens" and described them as "mischievous and misleading."
Government stresses price stability despite global volatility
Highlighting its track record, the ministry said India remains an exception globally when it comes to fuel price stability. "In fact, India is the only country where petrol and diesel prices haven't increased in the last 4 years," the post stated. The government also underlined efforts taken to shield consumers from global energy shocks, particularly amid ongoing geopolitical tensions that have pushed up international crude oil prices.
Measures to cushion global impact
The ministry said the Government of India and public sector oil companies have taken "relentless steps" to protect citizens from steep increases in international fuel prices. As part of these efforts, the Centre had earlier stepped in to cushion both consumers and oil companies from a sharp spike in crude prices, which surged 62% in a month for Indian refiners. The government cut excise duty on petrol and diesel by Rs 10 per litre each, even as fuel retailers like Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum were incurring losses of about Rs 24 per litre on petrol and Rs 30 on diesel.
To offset revenue losses, the government imposed export duties of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel, while also introducing a windfall tax. As per statements by Nirmala Sitharaman, the move aimed to ensure stable domestic prices despite global volatility, even as it created a significant fiscal burden. Officials noted that while the excise cut led to revenue losses of over Rs 7,000 crore, the export tax helped partly compensate for it.
Offene Fragen
- When exactly did the crude oil prices surge 62%?
- What is the current status of the windfall tax?
- How long will the current price stability last?
