Govt Says No Fuel Price Revision Planned After Elections in West Bengal

The Government has stated that there is no proposal to raise retail prices of petrol and diesel following the conclusion of state elections, as per news reports.  

The clarification was issued by Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, during a briefing on developments in West Asia. 

The statement follows speculation that prices could be revised after polling. As cited in the reports, officials said no such move is under consideration at present. 

Adequate Stocks and Supply Oversight 

Authorities said inventories of petrol, diesel, LPG, and aviation turbine fuel are sufficient to meet domestic demand. Supply conditions are being monitored in coordination with state governments. 

Panic buying was reported in some areas, particularly in Andhra Pradesh, where demand at certain outlets rose by 30-33%.  

This led to temporary shortages at more than 400 fuel stations. The government said supplies are being managed to avoid further disruption. 

Retail Rates Hold Despite Crude Surge 

Retail fuel prices have remained unchanged since early April 2022. This has continued despite fluctuations in global crude oil markets. 

Crude oil prices, which averaged about $70 per barrel last year, have recently crossed $114 per barrel amid tensions in West Asia. Domestic pump prices have not been revised during this period. 

Under-Recoveries at Oil Firms 

Public sector oil marketing companies are currently selling fuel below cost. Officials indicated losses of around ₹20 per litre on petrol and nearly ₹100 per litre on diesel. 

Daily losses are estimated at about ₹2,400 crore. Despite these under-recoveries, there has been no indication of an immediate price revision. 

Gas Allocation and Textile Sector Support 

Natural gas allocation for commercial users has been reduced to prioritise household consumption.  

The textiles and handicrafts sector, classified under priority categories III and IV, will receive 80% of its average gas consumption over the past 6 months. 

State-run GAIL is sourcing additional volumes from the spot market when required. The textiles ministry has also sought changes in customs and anti-dumping duties on select raw materials, including man-made fibre inputs. 

Read More: Government Pushes for Collective Global Buying in Fertiliser Sector! 

Conclusion 

The government has maintained that fuel prices remain unchanged, with adequate supplies in place and measures underway to manage demand and sector requirements. 

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