Petrol, diesel prices could be hiked by Rs 25–28 per liter, says report; what Petroleum Ministry said?
The conflict involving Iran and the crisis in the Strait of Hormuz have had a severe impact on the global oil supply chain. Crude oil prices have witnessed a massive surge, now crossing the $100-per-barrel mark. At one point, crude oil prices even touched $115 per barrel.
Consequently, petrol and diesel prices have been hiked in several countries, including the US, Europe, the UK, Pakistan, Sri Lanka, and Bangladesh. However, in India, the government has so far kept petrol and diesel prices stable, with state-run oil companies refraining from altering retail prices despite the elevated cost of crude oil.
A report has now surfaced claiming that petrol and diesel prices in India could witness a significant hike following the conclusion of the ongoing assembly elections in five states. The report suggests that petrol, diesel prices could be raised by as much as Rs 25–28 per liter.
Oil companies are facing mounting pressure
The report by Kotak Institutional Equities notes that oil companies are facing mounting pressure due to the conflict involving Iran and the tensions in the Strait of Hormuz. However, the government has kept oil prices stable in light of the elections. The report further states that as soon as the elections conclude, oil companies may gradually begin raising retail prices—a hike that could amount to ₹25–28 per liter.
Rising global crude oil prices and the crisis in the Strait of Hormuz have led to an increase in shipping and insurance costs. In March 2026, the price of the Indian crude basket rose by $47 per barrel, while the volume of crude oil imports also declined by 15 percent. As a result, India's daily crude oil import bill has surged to between $190 million and $210 million.
No plans to increase the prices: Petroleum Ministry
The government has responded to the report by Kotak Institutional Equities, categorically rejecting its claims. The Ministry of Petroleum and Natural Gas has stated, through a social media post, that there are no plans to increase the prices of petrol and diesel.
The Ministry further noted that, for the past four years, the government has kept petrol and diesel prices stable, and despite fluctuations in the global market, no changes have been made to retail prices. The government asserts that, currently, the Ministry of Petroleum has no plans that would entail a potential increase in the prices of petrol and diesel.