The government on Thursday dismissed reports suggesting petrol and diesel prices may be hiked by Rs 25-28 a litre soon after assembly elections, saying there is no such proposal under consideration.

"There are some news reports suggesting a price hike of petrol and diesel. It is hereby clarified that there is no such proposal under consideration by the government," the Ministry of Petroleum and Natural Gas said in a post on X.

The clarification came after a report by Kotak Institutional Equities hinted of a steep increase in petrol and diesel prices once the polling for assembly elections in states like West Bengal ends on April 29. Kotak projected a Rs 25-28 a litre increase in price based on crude oil staying close to USD 120 per barrel.

The ministry said such reports are "designed to create fear and panic amongst the citizens and are mischievous and misleading."

"In fact, India is the only country where petrol and diesel prices haven't increased in the last four years," it said.

"Government of India and oil PSUs have taken relentless steps in order to insulate the Indian citizens from steep increases in international prices."

International oil prices spiked after US and Israel attacked Iran on February 28, and Tehran's sweeping retaliation that effectively shut the Strait of Hormuz - one of the world's most critical energy arteries, linking the Persian Gulf to global markets and handling roughly a fifth of global oil trade along with significant volumes of liquefied natural gas.

After the Iran war, oil prices spiked from around USD 70 per barrel to USD 119 before seeing some correction. Renewed tensions have pushed Brent - the world's most known crude oil benchmark - to USD 103-106 per barrel.

Despite a more than 50 per cent rise in input crude oil prices, petrol and diesel rates have remained unchanged in India. Petrol is priced at Rs 94.77 a litre in the national capital and diesel comes for Rs 87.67.

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