The Indian government has dismissed reports that petrol and diesel prices increased by Rs 3 per litre [1].

Fuel pricing is a critical economic driver in India, where sudden shifts in cost can trigger inflation and impact transportation costs across the nation.

Reports published this week suggested that petrol and diesel prices were hiked by Rs 3 per litre effective immediately [1]. These reports linked the potential price surge to prolonged geopolitical tensions in the Middle East, which continue to affect global energy markets [2].

However, the Ministry of Petroleum and Natural Gas has pushed back against these claims. A spokesperson for the ministry said the reports were "mischievous and misleading" [3]. The government previously said on April 23, 2026, that it was not considering a price hike [3]. According to government sources, India has not increased petrol or diesel prices in the last four years [4].

While the ministry denies an immediate hike, some financial officials have cautioned that market volatility remains a risk. Sanjay Malhotra, Governor of the Reserve Bank of India, said petrol and diesel prices could rise if the conflict in the Middle East persists for an extended period [2].

This discrepancy creates a contradiction between immediate reports of price changes and official government denials. While some outlets reported the hike as an active event [1], the Times of India said the government dismissed such claims as fake news [3].

“"Mischievous and misleading"”

The tension between the Reserve Bank of India's warnings and the Ministry of Petroleum and Natural Gas's denials highlights the government's struggle to balance global oil price volatility with domestic economic stability. By maintaining price caps or subsidies, the government avoids immediate inflation but remains vulnerable to the long-term fiscal pressure caused by Middle East instability.