Fuel Prices Remain Stable Despite Global Turmoil, Government Tells Parliament
The Centre on Monday defended the prevailing prices of petrol, diesel and domestic LPG, saying that continuing geopolitical tensions in West Asia and elevated international energy prices have prevented any significant reduction in retail fuel prices despite reports of easing crude oil rates.
Responding to Rajya Sabha Unstarred Question No. 140, Minister of State for Petroleum and Natural Gas Suresh Gopi said India remains heavily dependent on imported crude oil, with more than 88 per cent of its requirement sourced from overseas. This dependence, the government said, makes domestic fuel pricing highly vulnerable to global market fluctuations.
The clarification came after Rajya Sabha member Haris Beeran asked whether retail prices of petrol, diesel and LPG had remained unchanged despite an alleged 30–40 per cent decline in international crude oil and petroleum product prices over the past two months, and whether the government planned to reduce retail fuel prices.
Crude Prices Rose After West Asia Conflict
Rejecting the premise of the question, the Ministry said that international crude oil prices had, in fact, surged following the outbreak of the West Asia crisis in early 2026.
According to the government, the price of the Indian basket of crude oil climbed to USD 136.68 per barrel in March 2026 and has since remained volatile because of continuing geopolitical tensions and uncertainty in global energy markets.
To cushion consumers from the sharp rise in international prices, the Centre said it reduced excise duty on petrol and diesel by ₹10 per litre each in March 2026, a move that significantly reduced government tax revenues.
The Ministry added that although public sector oil marketing companies (OMCs) have incurred substantial losses on the sale of petrol, diesel and LPG, retail prices of petrol and diesel were increased only marginally.
As of July 2026, the retail selling prices in Delhi are:
- Petrol: ₹102.12 per litre
- Diesel: ₹95.20 per litre
Government Details Measures to Safeguard LPG Supplies
The government also highlighted the severe impact of the West Asia conflict on India’s LPG supply chain.
Before the conflict, India imported nearly 60 per cent of its LPG requirement, with approximately 90 per cent of those imports passing through the Strait of Hormuz. The disruption of shipping through this critical route significantly affected LPG availability.
To prevent shortages, the Centre said it implemented a series of emergency measures, including increasing domestic LPG production, diversifying import sources, prioritising household LPG consumption, dynamically managing inventories and reallocating supplies across regions to address local shortages.
Domestic LPG Continues to Be Sold Below Market Price
The Ministry noted that the international Saudi Contract Price (Saudi CP)—the benchmark used for LPG pricing—rose to USD 780 per metric tonne during April and May 2026 and further increased to USD 796 per metric tonne in June.
As a result, the market-determined price of a 14.2-kg domestic LPG cylinder increased to around ₹1,695. However, the government said it has continued to keep the retail selling price at ₹942 per cylinder, absorbing the difference to protect consumers.
For beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), the effective price in July 2026 is ₹642 per cylinder, after a targeted subsidy of ₹300 per cylinder.
Government: Consumer Protection Remains the Priority
The Ministry said that global energy markets continue to be influenced by geopolitical uncertainty, making international oil and gas prices highly volatile. It maintained that the government’s strategy has been to shield consumers through tax reductions, targeted subsidies and proactive supply management while ensuring uninterrupted availability of essential petroleum products across the country.
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