In a concerted effort to shield consumers from high fuel prices, the Indian government has implemented several significant measures aimed at stabilizing and reducing the cost of petrol and diesel across the country. As of November 18, 2024, prices have fallen notably from Rs. 110.04 and Rs. 98.42 per litre for petrol and diesel in November 2021 to Rs. 94.77 and Rs. 87.67 per litre, respectively, in Delhi.
This drop is largely due to the reduction in central excise duties, which were slashed by Rs. 13 per litre for petrol and Rs. 16 per litre for diesel in two separate rounds—November 2021 and May 2022. These cuts were fully passed on to consumers, with several state governments also slashing VAT rates to ease the burden on citizens. Additionally, in March 2024, Oil Marketing Companies (OMCs) reduced the retail prices of both petrol and diesel by Rs. 2 per litre nationwide.
The government has also taken strategic steps to shield the public from global price fluctuations. Key actions have included diversifying the crude oil import sources, imposing windfall taxes on petroleum product exports, and invoking the Universal Service Obligation to ensure consistent fuel availability. Furthermore, the blending of ethanol into petrol has been ramped up as part of the effort to stabilize domestic fuel prices.
In a recent move, Public Sector Undertaking (PSU) OMCs implemented intra-state freight rationalization. This step has particularly benefited consumers in remote areas, where the reduced transportation costs have led to lower prices for petrol and diesel. Additionally, it has minimized the price disparities within states, making fuel prices more uniform across regions.
These efforts, according to Suresh Gopi, Minister of State for Petroleum and Natural Gas, demonstrate the government’s ongoing commitment to ensuring fair and reasonable fuel prices for the nation’s consumers.
