The Indian government has denied reports of an imminent petrol and diesel price hike, calling the circulating claims fake news [1].
Fuel pricing is a sensitive economic issue in India, and sudden increases often lead to public unrest and inflation. The official denial aims to prevent panic buying and stabilize consumer behavior across the country [1, 2].
Reports circulated on April 23, 2026, suggesting a possible price increase ranging from ₹25 to ₹28 per litre [3]. These rumors coincided with viral videos showing long queues at fuel stations. However, the Ministry of Petroleum and Natural Gas said there is no current policy proposal to raise prices [1, 2].
"These reports are mischievous and misleading," a ministry spokesperson said [1].
Another official from the Ministry of Petroleum and Natural Gas said, "The government is not considering any increase in fuel prices" [2]. The ministry further said that there is no proposal to raise petrol or diesel prices at this time [3].
Despite the official stance, state-owned oil marketing companies are reportedly facing significant financial pressure. Data indicates a loss of Rs 18 per litre on petrol and Rs 35 per litre on diesel [4]. This gap between market costs and retail prices creates a recurring narrative that a price correction is inevitable.
Some reports have suggested that a hike may occur after upcoming state elections, but the government has dismissed such claims as misleading [1, 3]. The administration maintains that the rumors were intended to create unnecessary panic among the public [1, 2].
“"These reports are mischievous and misleading," a ministry spokesperson said.”
The tension between official price freezes and the mounting losses of state-owned oil companies—up to Rs 35 per litre for diesel—suggests a precarious fiscal balance. While the government is prioritizing social stability and political optics by denying immediate hikes, the underlying economic pressure on marketing companies persists, making the market susceptible to periodic speculation.
