As panic buying of petrol and diesel increased across the country in anticipation of a price hike after elections conclude on 29 May, the government on Tuesday said that it has no proposal at present to increase retail fuel prices.
In a press briefing, Sujata Sharma, Joint Secretary of the Petroleum Ministry, said that oil marketing companies have sufficient fuel supplies and, therefore, people should avoid panic buying.
"We have adequate supplies of liquefied petroleum gas, petrol, and diesel. There has been no proposal to increase the price of petrol and diesel in the country. I request people to avoid panic buying and do not believe rumours," Sujata Sharma, Joint Secretary.
Last week, a report by Kotak Institutional Equities estimated that due to the global crude crisis, a significant hike of Rs25–Rs28 per litre in petrol and diesel prices is warranted. Subsequently, this led to panic buying as many people anticipated that petrol and diesel prices may increase after the elections are over on May 29, 2026. In Andhra Pradesh, rumours of an imminent price rise led to panic buying in several towns, resulting in shortages and more than 400 petrol pumps running dry on Sunday.
Petrol and diesel prices, which are driven by crude prices in the international market, have been trading at almost double levels ever since the conflict started in West Asia. India, which depends on imports for 88% of its total requirement, has been heavily impacted due to the conflict that led to the blockade of the crucial waterway, the Strait of Hormuz. Through this route, India sourced 60% of its oil imports, 50% of its liquefied natural gas imports, and about 90% of its liquefied petroleum gas before the crisis. Now, to make up for the disruption caused by the Strait of Hormuz blockade, the country has to diversify its imports from other countries, including the US, Russia, Argentina, and Australia.
Brent crude was trading at $111.6 per barrel, up by 3.11% or $3.47 per barrel at 18:17 IST. This elevated crude price has also increased India’s import basket to $110 per barrel as of 27 May 2026. Last week, Sujata Sharma said that state-owned fuel retailers were incurring losses of about Rs20 per litre on petrol and roughly Rs100 per litre on diesel, as pump prices have remained frozen for nearly four years. According to the Petroleum Ministry, some outlets saw demand rise by as much as 30–33%.
