New Delhi, May 19: Amid the ongoing Russia-Ukraine war and the Hormuz Strait crisis, the Indian government has provided significant relief to citizens by reducing petrol and diesel prices. A report titled “Petrol and Diesel: Structure of Consumer Protection,” released on Tuesday, claims that India has been the only major economy to cut retail fuel prices during both global energy crises.
According to the report, from November 2021 to March 2026, the government has offered a total relief of ₹27 on petrol and ₹30 on diesel. This includes a reduction of ₹10 per liter on both fuels through the Special Additional Excise Duty (SAED) cut on March 27, 2026.
The report highlights that despite a substantial surge in international crude oil prices, the central government has refrained from passing the burden directly onto consumers. Instead, it has reduced excise duties and absorbed revenue losses to provide relief to the public.
Additionally, the report addresses allegations of ‘over-taxation’ by the Congress party, stating that during the UPA government, oil bonds were issued to assist oil companies, placing the financial burden on future governments and generations. In contrast, the current government has directly reduced excise duties, offering immediate benefits to consumers without imposing additional future burdens.
The report details various instances of relief provided by the government on petrol and diesel prices. On November 4, 2021, a reduction of ₹5 on petrol and ₹10 on diesel was implemented. This was followed by an ₹8 cut on petrol and ₹6 on diesel on May 21, 2022. On March 14, 2024, oil companies also reduced prices by ₹2 each. Another ₹2 reduction was made in April 2025, culminating in the ₹10 cut on both fuels on March 27, 2026.
However, due to ongoing conflicts in West Asia and the Hormuz Strait crisis, petrol and diesel prices saw an increase of ₹3.14 and ₹3.11, respectively, on May 15. Just four days later, on May 19, prices rose again by approximately ₹0.90 per liter.
The report asserts that after the Hormuz Strait crisis began in February 2026, fuel prices surged by 10% to 90% in many countries, while India maintained stable prices for nearly 12 weeks.
It notes that during the Hormuz crisis, when Brent crude prices soared to $126 per barrel, the government and public sector oil companies absorbed significant losses to keep petrol and diesel prices stable. The SAED cut in March 2026 alone imposed an additional burden of around ₹30,000 crore on the central government.
Moreover, oil companies also endured under-recovery to ensure consumer relief. The report states that between February 2022 and February 2026, retail prices of petrol and diesel in Delhi changed by less than 1%, despite significant fluctuations in international crude oil prices.
The report further indicates that while the central government’s excise duty on petrol and diesel is uniform across the country, varying VAT rates in different states lead to price discrepancies. In states like Andhra Pradesh, Telangana, and Kerala, petrol prices exceed ₹107 per liter due to higher VAT. Conversely, states like Gujarat, Uttar Pradesh, Delhi, Haryana, Goa, and Assam have relatively lower petrol prices. Despite the central government’s excise duty cuts, several opposition-ruled states have not reduced VAT.
In conclusion, the report emphasizes that despite challenging global conditions such as the Russia-Ukraine war and the Hormuz crisis, the Indian government has taken several steps to relieve consumers, including excise duty cuts, payment of oil bonds, and adjustments through oil companies. According to the report, India remains one of the few major economies striving to provide relief to the public regarding petrol and diesel prices during the global energy crisis.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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