In a piece of good news for the petrol and diesel customers, the Central government on Tuesday said it has no plans to increase petrol and diesel prices, dismissing speculation of a hike after polling in West Bengal ends on April 29. Retail petrol and diesel prices have remained unchanged for a record fourth year, even as conflict in West Asia has pushed crude oil costs up more than 50 per cent over the past two months.
The widening gap between input costs and pump prices has left state-run fuel retailers incurring heavy losses – with some estimates pegging daily loss at about Rs 2,400 crore – fuelling speculation of an imminent price hike after politically charged assembly elections in Tamil Nadu, West Bengal, Assam, Kerala and Puducherry conclude on Wednesday.
Oo proposal to increase petrol and diesel prices: Sujata Sharma
“There is no proposal to increase petrol and diesel prices,” Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said at a news briefing on the fallout of developments in West Asia.
She was responding to a question on whether retail fuel prices would be raised after polling in West Bengal concludes on Wednesday. She dismissed speculation of an imminent price rise that had triggered panic buying in parts of states such as Andhra Pradesh.
“We have seen panic buying in some places. We are in continuous contact with state governments in all these places. All retail outlets are being monitored and supplies are being prioritised (at petrol pumps witnessing increased buying) so that stock availability is ensured and there are no dry-outs,” she said.
Rumours of imminent price rise led to panic buying in several towns
In Andhra Pradesh, rumours of imminent price rise led to panic buying in several towns, leading to shortage and more than 400 petrol pumps running dry on Sunday, according to reports. According to the Petroleum Ministry, some outlets saw demand rise by as much as 30-33 per cent.
She added that the country has adequate inventories of all fuels – from petrol and diesel to cooking gas 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. “I want to urge everyone to please don’t believe in rumours.
Avoid panic buying and rely on official sources for information.”
Clarification comes despite mounting financial pressure on state-run fuel retailers
The clarification comes despite mounting financial pressure on state-run fuel retailers, which officials say are selling petrol and diesel below market rates and incurring significant losses. Analysts had earlier flagged the possibility of price increases of Rs 25-28 per litre after elections due to rising global crude oil costs and widening gaps between international and domestic fuel prices.
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