Petrol and Diesel Prices in India: Latest Updates, Government Measures, and Relief for Common Man
The prices of petrol and diesel have remained unchanged for several months, with the last reduction occurring in March 2023 when oil marketing companies (OMCs) announced a price cut of Rs 2 per liter for both fuels. As petrol and diesel prices are market-determined, public sector OMCs make pricing decisions based on global and domestic factors. The question on everyone’s mind is: Is the Modi government planning to provide further relief to the common man by reducing fuel prices soon?
Fuel Price Trends Over the Last Five Years
Over the past five years, petrol and diesel prices have seen a significant rise. In 2019, petrol was priced at Rs 72 per liter, and diesel at Rs 65 per liter. As of now, petrol costs Rs 94.77 per liter, and diesel is priced at Rs 87.67 per liter (Delhi prices). The highest fuel rates in the last five years were recorded during the financial year 2021-22, driven by global crude oil price fluctuations.
Government Measures to Reduce Fuel Prices
The government has taken several steps to provide relief to consumers amidst rising global crude oil prices. Union Minister Suresh Gopi highlighted that the reduction in fuel rates is a result of proactive measures by the government and OMCs. Key steps include:
- Reduction in Central Excise Duty: In November 2021 and May 2022, the central excise duty was reduced by Rs 13 per liter on petrol and Rs 16 per liter on diesel.
- State VAT Cuts: Several state governments also reduced VAT rates to ease the burden on consumers.
- OMC Price Cuts: In March 2024, OMCs reduced the retail prices of petrol and diesel by Rs 2 per liter each.
- Diversification of Crude Oil Imports: The government has diversified India’s crude oil import basket to reduce dependency on specific regions.
- Ethanol Blending: The blending of ethanol in petrol has been increased to reduce reliance on pure fossil fuels and lower costs.
India’s Unique Position in Global Fuel Pricing
India is the only major economy where petrol and diesel prices have decreased in recent years. Between November 2021 and January 2025, petrol prices in India fell by 13.60%, while other major economies like France, Germany, the UK, and the USA saw significant increases. During the same period, petrol and diesel prices in these countries surged by 54% and 101.59%, respectively.
Will There Be Further Relief for Consumers?
While the government has taken significant steps to stabilize fuel prices, the possibility of further relief depends on global crude oil trends and domestic economic conditions. The Modi government has consistently prioritized shielding common citizens from high international prices, and any future decisions will likely focus on balancing fiscal responsibility with consumer welfare.
Key Takeaways for Consumers
- Petrol and diesel prices have remained stable for several months.
- The government has reduced central excise duties and encouraged state VAT cuts to provide relief.
- India is the only major economy where fuel prices have decreased in recent years.
- Future price reductions will depend on global crude oil trends and government policies.
Stay updated on the latest petrol and diesel prices, government measures, and relief announcements to make informed decisions. For more details on fuel pricing trends and policies, keep following trusted news sources.
