In a unique global scenario, India stands as the only major economy witnessing a decline in petrol and diesel prices over recent years. This trend contrasts sharply with the global rise in fuel costs, reflecting the Indian government’s strategic interventions and policies aimed at shielding its citizens from volatile international markets.
To mitigate the impact of high international oil prices, the Government of India has implemented several measures. These include diversifying the crude import basket, imposing windfall taxes on petroleum product exports, and invoking the Universal Service Obligation to ensure the domestic availability of petrol and diesel. Additionally, the government has increased the blending of ethanol in petrol, enhancing fuel efficiency and reducing dependency on traditional fuels.
Significant tax reductions have also played a crucial role. The Central Government cut Central Excise duty by Rs. 13 per litre on petrol and Rs. 16 per litre on diesel in two phases, first in November 2021 and then in May 2022. These reductions were fully passed on to consumers, providing immediate relief. Several state governments complemented these efforts by lowering state VAT rates, further easing the financial burden on citizens.
In a recent development in March 2024, Oil Marketing Companies (OMCs) reduced the retail prices of petrol and diesel by Rs. 2 per litre each. As a result, the current retail selling prices (RSP) in Delhi stand at Rs. 94.72 per litre for petrol and Rs. 87.62 per litre for diesel.
This information was disclosed by Suresh Gopi, the Minister of State in the Ministry of Petroleum and Natural Gas, in a written reply in the Rajya Sabha today. The minister highlighted the government’s ongoing commitment to protecting consumers from global fuel price fluctuations and ensuring affordable energy access for all.
Changes in prices of petrol and diesel in some major economies between November 2021 and April 2024 are as under:
| %age Change in Prices between Nov-21 and April-24 | ||
| Country | Petrol | Diesel |
| India (Delhi) | -13.65 | -10.97 |
| France | 22.19 | 20.17 |
| Germany | 15.28 | 16.47 |
| Italy | 14.82 | 17.38 |
| Spain | 16.58 | 18.14 |
| UK | 5.79 | 9.56 |
| Canada | 22.07 | 22.24 |
| USA | 19.08 | 20.25 |
Source: Petroleum Planning and Analysis Cell
Changes in prices of petrol and diesel in some neighbouring economies between November 2021 and April 2024
| %age Change in Prices between Nov-21 and April-24 | ||
| Country | Petrol | Diesel |
| India (Delhi) | -13.65 | -10.97 |
| Pakistan | 44.98 | 43.65 |
| Bangladesh | 22.01 | 40.24 |
| Sri Lanka | 75.54 | 142.91 |
| Nepal | 31.08 | 35.70 |
Source: Petroleum Planning and Analysis Cell
