India Vigilantly Observing Global Energy Markets with Consumer-Centric Strategy: Minister
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Synopsis
India is the only major economy where fuel prices have decreased in recent years, as confirmed by the government. Monitoring global energy markets and potential supply disruptions due to geopolitical changes is a priority, ensuring a consumer-first approach.
Key Takeaways
- India is the only major economy with declining petrol and diesel prices.
- Government initiatives have led to lower domestic fuel prices.
- Public sector undertakings are diversifying crude oil sources.
- Significant reductions in Central excise duties were implemented.
- Over 10 crore families benefit from the Ujjwala LPG scheme.
New Delhi, March 24 (NationPress) India stands out as the only significant economy worldwide where petrol and diesel prices have decreased in recent years, as reported to the Parliament on Monday. The government emphasized that it is attentively observing global energy markets and potential disruptions in energy supply due to the changing geopolitical landscape.
To safeguard crude supply and reduce reliance on oil from a single region, public sector enterprises (PSUs) have diversified their oil import sources, sourcing crude from various geographical areas.
As a result of the government's initiatives and actions taken by PSU oil marketing companies (OMCs), local prices for petrol and diesel have fallen to Rs 94.77 and Rs 87.67 per litre, respectively (Delhi prices), stated the Minister of State for Petroleum and Natural Gas, Suresh Gopi, in a written response to the Rajya Sabha.
The government reduced the Central excise duty by Rs 13 per litre on petrol and Rs 16 per litre on diesel in two phases during November 2021 and May 2022, fully passing the benefits to consumers.
Additionally, some state governments lowered state VAT rates to ease the burden on citizens. In March 2024, OMCs decreased retail prices for petrol and diesel by Rs 2 per litre.
India imports approximately 60 percent of the domestic LPG used. The price of LPG is tied to international market rates.
Despite the average Saudi CP (international benchmark for LPG pricing) increasing by 63 percent (from US$385/MT in July 2023 to US$629/MT in February 2025), the effective price for Pradhan Mantri Ujjwala Yojana (PMUY) consumers for domestic LPG was reduced by 44 percent (from Rs. 903 in August 2023 to Rs 503 in February 2025), the minister revealed.
The retail price for a 14.2 kg domestic LPG cylinder is currently Rs 803 in Delhi. After a targeted subsidy of Rs 300 per cylinder to PMUY consumers, the government effectively offers 14.2 kg LPG cylinders at Rs 503 each (in Delhi).
This initiative benefits over 10.33 crore Ujjwala beneficiaries nationwide, providing domestic LPG to more than 100 million low-income households at an effective price of approximately Rs 35/kg.
