Petrol, diesel prices to fall? Here's what government said

The government cut excise duty by ₹10 per litre in March but has announced no fresh fuel price cut.

Updated on: Aug 10, 2026, 20:08:36 IST

By HT News Desk

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The government has no direct role in deciding prices of petrol and diesel, as rates are market-driven, and public sector oil companies decide the costs, the petroleum ministry said on Monday.

The government said that the increase in petrol and diesel prices in India between June 2021 and June 2026 was much lower than in several developed and neighbouring countries. (Representative image)

Minister of state for petroleum and natural gas Suresh Gopi gave the response in the Rajya Sabha while answering a question on whether the government planned to reduce petrol and diesel prices amid a sustained decline in international crude oil prices.

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Govt points to lower price rise in India

The government said that despite volatility in global crude oil and petroleum product prices, the increase in petrol and diesel prices in India between June 2021 and June 2026 was much lower than in several developed and neighbouring countries.

In Delhi, petrol prices rose 8.1% during this period, while diesel prices increased 11.5%.

By comparison, petrol prices rose 70.6% in the US, 59.9% in France, 51.1% in Germany and 46.9% in the UK. In neighbouring countries, petrol prices increased 160.6% in Pakistan, 148.6% in Sri Lanka and 76% in Nepal, the minister added.

Diesel prices rose 97.4% in the US, 71.2% in France, 63% in Germany and 62.5% in the UK. The increase was 148.9% in Pakistan, 207.1% in Sri Lanka and 111.8% in Nepal.

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Crude prices rose during US-Israeli war on Iran

The government also commented on the sharp rise in crude oil prices following the war in West Asia. According to the ministry, the price of India's crude oil basket was around $69 per barrel in February 2026. It rose to $136.68 per barrel in March and continued to fluctuate due to geopolitical and market factors.

The government said PSU oil companies absorbed a significant part of the increase instead of fully passing it on to consumers.

As a result, all three major PSU OMCs reported losses in the first quarter of 2026-27.

Indian Oil Corporation reported a loss of ₹2,662 crore, Bharat Petroleum Corporation Ltd reported a loss of ₹3,962 crore, while Hindustan Petroleum Corporation Ltd reported a loss of ₹11,526 crore.

Excise duty cut by ₹10 per litre

The government also said it reduced excise duty on both petrol and diesel by ₹10 per litre in March 2026 to protect consumers from the impact of rising international crude prices.

This also led to a substantial reduction in government tax revenue.

The government did not announce any fresh reduction in petrol or diesel prices.

Petrol-diesel rates in India

As of August, petrol and diesel prices continue to vary across cities due to differences in state taxes and local levies.

In Delhi, petrol is priced at ₹102.12 per litre and diesel at ₹95.20. In Mumbai, petrol costs ₹111.21 and diesel ₹97.83, while in Chennai, the rates are ₹107.77 and ₹99.55, respectively.

Bengaluru has petrol at ₹111.68 per litre and diesel at ₹99.56. Prices in other major cities such as Kolkata and Hyderabad remain above ₹110 per litre for petrol.

Since the US-Israel war on Iran began on February 28, India raised retail petrol and diesel prices quite a few times. The first major increase came on April 16, when state-run oil companies raised both petrol and diesel by ₹3 per litre.

Prices were then raised again in May: a second hike of about ₹0.90 per litre came on May 19, followed by another increase later that month. After three hikes since May 15, the cumulative increase in Delhi had reached ₹4.74 per litre for petrol and ₹4.82 for diesel.

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HT News Desk
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