New Delhi: Amid the rising global crude prices, the speculation of a surge in petrol and diesel prices post-elections spread across parts of the country. But the government today announced that there is no plan to increase the process after polling ends in West Bengal on April 29.
The clarification follows after more than 400 fuel stations ran dry on Sunday as demand saw a surge of around 30-33 per cent at some outlets.
The Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma, said, “We have seen panic buying in some places. We are in continuous contact with state governments. “All retail outlets are being monitored and supplies are being prioritised so that stock availability is ensured and there are no dry-outs.”
She made it clear that there is no proposal to increase the prices, as she urged the public not to rely on rumours and avoid panic buying and to only rely on official sources for the information.
According to the latest update from the government, the country has enough stocks of petrol, diesel and LPG fuel to meet demand. She added, “We have enough supplies of LPG, petrol and diesel. Prices are stable and there has been no increase in rates.”
Retailers under pressure
The state-run oil firms are facing an escalating financial crisis as the gap between global crude costs and domestic retail prices widens to breaking point.
Though officials said that the losses are quite significant, with estimates suggesting a daily loss of Rs 2,400 crore.
Global supply chain disruptions
The global crude prices have surged by 50 per cent over the last two months. The crude, which was around USD 70 per barrel, has increased to USD 114 this month due to ongoing Middle East crisis.
However, the retail fuel prices have remained frozen for four years in India. While consumers in Delhi continue to pay Rs 94.77 for petrol and Rs 87.67 for diesel, the sustainability of these rates is in question.