Petrol Price History in India: How Prices Changed Over 10 Years (2014–2026)

When the Narendra Modi government took office in May 2014, petrol in Delhi was priced at approximately ₹71.5/L. This was already a high point - prices had risen steeply between 2009 and 2014 as crude oil climbed above $100/barrel. Diesel was still heavily subsidised and controlled at that time.

Then came the global crude oil price crash. Brent crude, which was above $100/barrel in mid-2014, collapsed to below $30/barrel by January 2016 due to OPEC's decision to maintain production despite oversupply. Petrol prices in India fell sharply - Delhi prices dropped to approximately ₹58/L by early 2016.

However, the government did not pass the full crude price benefit to consumers. Instead, central excise duty on petrol was raised multiple times between November 2014 and January 2016 - in total by approximately ₹11.77/L. This absorbed the crude price windfall into central government revenues and limited consumer savings.

• May 2014: Petrol ~₹71.5/L in Delhi (Brent crude ~$110/bbl)
• January 2016: Petrol ~₹58/L in Delhi (Brent crude ~$28/bbl)
• Central excise raised by ~₹11.77/L between 2014–2016 to offset crude fall
• Diesel decontrolled in October 2014 - allowed to move with market prices

As crude oil prices recovered from their 2016 lows, Indian petrol prices also climbed. By mid-2018, with Brent crude back above $75/barrel and the Indian rupee weakening against the US dollar (India buys crude in USD), Delhi petrol prices rose to approximately ₹78–82/L.

The rupee depreciation factor is often underappreciated. Even if crude stays flat at $70/bbl, a weakening rupee (say, from ₹65 to ₹70 per dollar) increases the rupee cost of crude by about 8%, which feeds directly into petrol prices. In 2018, both crude prices and USD strengthening hit India simultaneously.

By October 2018, Delhi petrol hit ₹82.83/L - which triggered significant political pressure ahead of state assembly elections. The government cut central excise by ₹1.50/L and asked states to cut their VAT by ₹2.50/L. Several states complied partially.

The most significant structural reform in Indian fuel pricing in recent history was the shift to daily dynamic pricing, introduced on June 16, 2017. Before this, prices were revised fortnightly by the government in consultation with OMCs - a system that was opaque, susceptible to political interference, and often built up large under-recoveries that were later corrected in sudden large jumps.

Under daily pricing, OMCs (Indian Oil, BPCL, HPCL) revise petrol and diesel prices every day at 6 AM based on a 15-day rolling average of international crude benchmark prices and the INR-USD exchange rate. This makes India one of the few developing nations with truly market-linked fuel pricing.

In practice, OMCs have occasionally frozen prices for extended periods during sensitive times (state elections, general elections, budget periods). These freezes are not officially acknowledged but are widely observed - for example, petrol prices were frozen for over 130 days before the 2022 UP state elections, even as crude prices were rising.

The COVID-19 pandemic created the most extreme crude oil price event in history. In April 2020, WTI crude futures briefly traded at negative prices for the first time ever as storage capacity ran out. Brent crude fell to below $20/barrel.

In India, petrol prices in Delhi fell to approximately ₹69/L by mid-2020. However, the government simultaneously raised excise duty by ₹13/L on petrol and ₹16/L on diesel in March and May 2020 to boost revenues during the COVID fiscal crisis. This meant consumers saw only a modest price reduction despite the massive crude price crash.

By 2020, central excise duty on petrol had reached ₹32.90/L - its highest ever level - and on diesel ₹31.80/L. Combined with state VAT, taxes accounted for more than 60% of the retail petrol price in some states. India had among the highest effective fuel tax rates globally relative to base prices.

• April 2020: Brent crude briefly under $20/bbl (COVID demand collapse)
• Delhi petrol: ~₹69–71/L in mid-2020
• Central excise raised by ₹13/L on petrol in March–May 2020
• Tax share of retail petrol price: ~60%+ in high-VAT states

As the world recovered from COVID, crude oil prices surged. By October 2021, Brent had crossed $80/barrel. OMCs in India had frozen petrol prices for nearly six months ahead of state elections but were forced to start revisions. Prices climbed from ₹95/L to ₹101/L in October 2021. Then, in November 2021, the government cut central excise duty by ₹5/L on petrol and ₹10/L on diesel - the first major excise cut in years - bringing Delhi petrol down to approximately ₹95/L.

But the Russia-Ukraine war, which began in February 2022, sent Brent crude above $130/barrel. Global energy prices spiked. India, which had temporarily benefited from discounted Russian crude purchases, still saw domestic prices rise. OMCs had again frozen prices during UP state elections (Dec 2021 – March 2022). When the freeze ended in March 2022, prices were revised sharply upward. Delhi petrol hit ₹105.41/L in April 2022 - the highest price ever recorded in India.

The government responded on May 21, 2022, with a central excise cut of ₹8/L on petrol and ₹6/L on diesel. This was one of the largest single-day price reductions in Indian fuel pricing history, cutting petrol by approximately ₹9.5/L overnight (the extra reduction came from cascading VAT effect). Delhi petrol dropped to approximately ₹96/L. Many states also reduced their VAT.

After the May 2022 excise cut, petrol prices in Delhi stabilised in the ₹94–97/L range. With Brent crude fluctuating between $75–90/barrel through 2023 and 2024, OMCs made small adjustments. A further minor excise cut of ₹2/L was made in August 2023.

Through 2025 and into 2026, crude prices remained in the $70–85/bbl range as global demand moderated and OPEC+ managed supply carefully. Indian petrol prices in Delhi have traded in the ₹94–98/L range. Higher-VAT states like Rajasthan and Telangana have prices ₹10–15/L above Delhi, as state VAT adjustments have been minimal.

The biggest pending structural change is the potential inclusion of petrol in GST, which could dramatically reshape pricing and reduce inter-state variation - but as of 2026, there is no confirmed timeline for this reform.

• 2014: ~₹71.5/L (Delhi) - moderate crude, high taxes already
• 2016: ~₹58/L (Delhi) - crude crash, but government raised excise
• 2018: ~₹82/L (Delhi) - crude recovery + rupee weakness
• 2020: ~₹69/L (Delhi) - COVID crash, but excise raised simultaneously
• April 2022: ₹105.41/L (Delhi) - Russia-Ukraine crude spike (all-time high)
• May 2022: ~₹96/L (Delhi) - after ₹8/L excise cut
• 2026: ~₹94–98/L (Delhi) - stable crude, post-excise-cut range