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Rumors of a skyrocketing fuel price hike have been circulating following a recent brokerage report, causing a stir among commuters and businesses alike. Speculation suggested that petrol and diesel prices could see a steep jump of up to ₹28 per litre once the ongoing assembly elections conclude on April 29.
The Source of the Speculation: Kotak Institutional Equities Report
The buzz originated from a research note by Kotak Institutional Equities. The brokerage pointed out that while global crude oil prices have surged hitting nearly $120 per barrel due to tensions in the Middle East and the closure of the Strait of Hormuz domestic retail prices in India have remained frozen.
According to the report, oil marketing companies (OMCs) are currently absorbing significant losses, estimated at approximately ₹270 billion per month. Based on current international market conditions, the brokerage calculated that a hike of ₹25–28 per litre would be technically necessary to offset these losses.
Government Steps In: "Fake News and Misleading"
In response to the growing panic, the Ministry of Petroleum and Natural Gas (MoPNG) issued a strong clarification on April 23, 2026. The government officially dismissed these reports as “mischievous, misleading, and designed to create fear.”
"It is hereby clarified that there is no such proposal under consideration by the Government," the Ministry stated in a post on X.
The government highlighted that India has managed to keep fuel prices stable for the last four years, even as global prices fluctuated wildly. They credited "relentless steps" by the Centre and Oil PSUs for insulating Indian citizens from the impact of international energy inflation.
The Middle East Crisis and Crude Oil Impact
While the government has denied an immediate hike, the global energy landscape remains volatile. The conflict in West Asia and the resulting blockade of the Strait of Hormuz a critical artery through which 20% of global oil and 40% of India’s crude passes have kept market analysts on edge.
While a ₹28 jump seems unlikely given the government's stance, analysts suggest that if global crude remains above $100–120 for an extended period, the government might eventually consider smaller, phased adjustments rather than a single massive hike to balance fiscal health with consumer protection.
Read More: Massive Fuel Price Hike After Elections? The Truth Behind the ₹28/Litre Buzz
