On 31 March, as the financial year drew to a close, was priced at $74.69 per barrel in the international market. On the same day, petrol in Delhi was retailing at Rs 94.77 per litre, a price which has remained unchanged for the past five months.
have, however, declined in the international market from $79 in January to $64.62 in April, dipping once to $59 in the first week. Yet, fuel prices at petrol pumps across India remained unchanged. The government responded to the lower international price by increasing the excise duty on petrol and diesel by Rs 2 per litre.
The price of an LPG cylinder was also increased by Rs 50. Union minister Hardeep Singh Puri explained the hike by claiming that the ‘inventory cost’ of Indian oil companies was too high and this would enable them to recoup losses. He also assured the public that retail prices would not be affected.
Reacting on X, Congress MP Manish Tewari said, ‘Crude oil prices are in a free fall. Today crude oil is at $64 a barrel. Why is the benefit not being passed on to the consumers? What happened to dynamic pricing? Is it a one-way street that only goes up and does not go down?’
Former finance minister P. Chidambaram posted, ‘Oil prices have declined $10.31 per barrel (14.37 per cent) since 1 January 2025; Brent Oil is at $64.62 per barrel (I remember July 2008 when oil prices had touched an all-time high of $147.27 per barrel); I am setting out the context in which the central government has increased the price of LPG cylinder and imposed additional excise duty on petrol and diesel.
The hon’ble Union minister of petroleum’s “explanation” has to be seen in this context — and critically analysed. I wish the media will ask more questions of the hon’ble Union minister.’ Neither the people nor the media have shown any appetite to though.
Even Bollywood celebrities, who posted jokes laced with sarcasm between 2010 and 2014, have fallen silent. Film director Vivek Agnihotri had wisecracked, “May your happiness increase like petrol prices and your sorrow fall like the Indian rupee.”
Actor Anupam Kher had shared his driver’s explanation for being late: he could not afford to buy petrol for his motorcycle. Akshay Kumar, another actor who famously asked Prime Minister Modi whether he liked to suck on mangoes, had advised Indians to spruce up their bicycles.
However, the BJP government has been successful in keeping Bollywood at bay and damning headlines and pesky TV debates out of the media. The interrogative spirit has dried up as ministers do not like to be asked questions even at press conferences.
When the Manmohan Singh government deregulated petroleum pricing, it pledged to align retail prices with global crude trends — falling when crude prices dropped and rising when they increased — without any interference from the government.
When the Modi government came to power in 2014, it neither upheld this policy of price alignment with global markets nor officially abandoned it. It did not adopt a new formula either. BJP WhatsApp groups have been informed that the government must have revenue to pay for welfare schemes like free rations being given to 80 crore Indians.
Whenever crude prices rose globally, petrol and diesel prices in India also went up. Ironically, the price of oil had started declining in 2014 itself and it was attributed to PM Modi’s ‘luck’. In effect, the public was cheated — they had accepted high fuel prices believing they would also pay less when crude became cheaper. That expectation was never fulfilled. Like frogs in slowly heating water, they became inured to periodical increases in fuel prices.
During Manmohan Singh’s tenure, every time petrol and diesel prices rose owing to global market pressures, the BJP would raise a storm in and outside Parliament. Leaders at every level of the party held protests and dharnas, while their media ecosystem amplified the outrage. Social media buzzed with sarcastic posts and memes.
On one occasion, when fuel prices were hiked, Gujarat’s then chief minister Narendra Modi called it “a prime example of the failure of the Congress-led UPA”.
When Modi became prime minister in May 2014, he was handed a golden opportunity to ease fuel prices. At the time, crude oil was trading at $106.85 per barrel — near its peak. Soon after, global oil prices began to crash, falling by over 70 per cent to just $28.10 per barrel by January 2016. But Indian consumers saw little or no relief.
As crude prices plunged internationally, the government steadily increased excise duties on petrol and diesel. The opportunity to pass on the benefit to the public was deliberately forfeited.
A comparison of petrol pricing in Delhi between May 2014 and September 2018 illustrates how rising taxes affected fuel costs. In May 2014, the Central government levied a tax of Rs 10.38 per litre on petrol. By September 2018, this had nearly doubled to Rs 19.48. Not to be left behind, the Delhi government also increased its tax from Rs 11.90 to Rs 17.16 per litre during the same period.
As taxes increased, so did the commission paid to petrol pump dealers — from Rs 2 to Rs 3.64 per litre. The combined impact of these hikes was stark. In May 2014, petrol in Delhi was selling at Rs 71.41 per litre. By September 2018, it had risen to Rs 80.73—despite the fact that global crude oil prices were significantly lower.
This disparity becomes clearer when one looks at the base price of petrol. In May 2014, after accounting for company margins, transportation and other costs, the base price at which petrol reached pumps was Rs 47.13 per litre.
By September 2018, this had actually fallen to Rs 40.45. Yet, the final price paid by consumers went up — driven entirely by increased taxes and commissions.
As if this was not enough, government interference in fuel pricing soon became pronounced. In the run-up to the 2022 assembly elections in four states and one Union Territory, the steadily rising petrol and diesel prices suddenly stopped fluctuating. On 27 February 2022 — exactly a month before polling began on 27 March — fuel prices were frozen.
In 2024, the government went a step further. Just weeks before the general elections, it slashed petrol and diesel prices, offering temporary relief to a public burdened by high inflation. These moves marked a clear shift: India was slipping back into an era of regulated fuel pricing, retreating from the earlier commitment to deregulation.
The dogged refusal to lower retail prices of fuel even when crude costs are lower reveals a disturbing pattern of policy inconsistency and public deception. When people are asked to bear the brunt of rising prices in the name of global volatility, they expect relief when that volatility swings in their favour.
The fact that this relief never came exposes a glaring imbalance in the system. The Modi government’s handling of fuel pricing has betrayed the trust of millions who expected fairness and transparency. By prioritising revenue over relief, it has turned a deregulated market into a tool for exploitation.
Fuel prices affect every aspect of daily life — from household budgets to the cost of essential goods and services. In that sense, it is not just an economic issue but a deeply political one. If the government wishes to retain credibility on its economic policies, it must ensure that price mechanisms are fair, transparent and consistent — not opportunistic.
Until that happens, every rise at the pump will not just pinch the pocket — it will remind citizens of promises made, and broken.
