Despite volatile crude, domestic fuel prices reduced owing to govt initiatives: Hardeep Puri

Hardeep Singh Puri

Domestic petrol and diesel prices have reduced in India, despite international crude oil price fluctuations, owing to various steps taken by the government and state-run oil marketing companies (OMCs), said Hardeep Singh Puri, Union minister for petroleum and natural gas, on August 21.

Petrol and diesel prices currently stand at Rs 94.77 and Rs 87.67 per litre respectively (in Delhi), compared to Rs 110.04 and Rs 98.42 per litre in November 2021, said Puri in a written reply in Lok Sabha. Meanwhile, crude oil prices rose to $116 per barrel in June 2022 from $55 a barrel in March 2015.

Puri said that the central government reduced excise duty by Rs 13 per litre on petrol and Rs 16 per litre on diesel in two tranches in November 2021 and May 2022, fully passing the benefit to consumers. Some state governments also reduced VAT to provide further relief to consumers.

In March 2024, the state-run OMCs reduced retail prices of petrol and diesel by Rs 2 per litre each. In April 2025, excise duty on petrol and diesel was increased by Rs 2 per litre each, without being passed on to consumers, the minister said.

Puri added that the government is committed towards ensuring energy security, affordability and accessibility for every citizen. He said that the prices of petrol and diesel are market determined and state-run OMCs take appropriate decisions on pricing.

The prices of petroleum products in the country are linked to the international market, with India importing more than 85 percent of its crude oil requirements.

The government took several measures to insulate citizens from high international oil prices, including diversifying the crude import basket, invoking provisions of Universal Service Obligation to ensure availability of petrol and diesel in the domestic market, and augmenting domestic exploration and production of crude oil, said Puri.

The state-run OMCs have carried out intra-state freight rationalisation, benefiting consumers in remote areas by reducing petrol and diesel prices in far-flung regions, Puri informed adding that the move reduced the difference between maximum and minimum retail prices within a state.

The government is also promoting ethanol blending and enhancing the share of renewable energy in India’s energy basket, the minister added.