Official says unaware of price stabilisation fund for petrol, diesel, LPG
This story was originally published at 17:32 IST on 15 April 2026
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NEW DELHI – Sujata Sharma, joint secretary in the Ministry of Petroleum and Natural Gas, said she is not "aware of any price stabilisation fund" being considered for petrol, diesel, and liquefied petroleum gas in the wake of the West Asia war. "I am not aware of anything like that," Sharma said while briefing the media Wednesday on developments relating to the war.
A few media outlets had reported that the government is considering the creation of a financial buffer for petrol, diesel, and LPG to manage supply disruptions and price volatility. After the West Asia war broke out on Feb. 28, crude oil prices jumped sharply and concerns over energy flows mounted after Iran shut the Strait of Hormuz. Crude oil prices surged to as high as $120 a barrel from $73 a barrel in the pre-war period. Currently, the commodity is being traded at $96 a barrel.
According to the reports, the proposed price stabilisation fund would be similar to the price stabilisation fund used to contain inflation in essential farm commodities such as pulses, onions, potatoes, and tomatoes. As per the reports, the government has discussed how such a fund would be financed, what would trigger intervention, and how it could be deployed without distorting market signals. It would be an intervention tool for periods of abnormal price rise, when the government may need to increase supply in the market to prevent a broader inflation shock, the media outlets reported.
The price stabilisation fund for critical agriculture commodities was set up in the financial year 2014-15 (Apr-Mar) to create strategic buffer stocks, with agencies like the National Agricultural Cooperative Marketing Federation of India Ltd. purchasing directly from farmers at market-driven prices. It also provides interest-free loans to central agencies and state governments to set up a state-level price stability fund, with a 50:50 sharing ratio. The Budget for FY27 has allocated INR 41 billion for the price stabilisation fund for agricultural commodities. End
US$1 = INR 93.37
Reported by Priyasmita Dutta
Edited by Rajeev Pai
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