As fuel prices shot up in several countries during the recent global oil crisis, India saw a relatively smaller increase in petrol and diesel rates. While prices did go up, government sources say a mix of delayed hikes, tax cuts and financial support measures helped keep the increase lower than in many parts of the world.
Petrol and diesel prices in India remained mostly unchanged for 78 days despite rising tensions in global oil markets. A phased increase started later, with prices revised on May 15, 19, 23 and 25, taking the overall rise to nearly Rs 7 per litre.
Government sources said many countries witnessed much steeper fuel price rises during the crisis.
According to the comparison shared by sources, petrol prices in Myanmar increased by as much as 89%, while diesel prices rose by 112%. Countries such as Pakistan, the UAE, the US and the Philippines reportedly saw fuel prices climb by more than 40–50%.
In Europe, petrol prices were said to be in the range of Rs 180 to Rs 235 per litre.
In comparison, petrol in Delhi is priced at around Rs 102 per litre, while diesel costs nearly Rs 95 per litre. Sources claimed that among countries where fuel is not subsidised, India remains one of the lowest-priced markets.
The fuel price debate has also turned political, with government sources pointing to state taxes as a major reason for price differences across India.
According to sources, the Centre charges a uniform excise duty across the country, while states impose their own Value Added Tax (VAT), leading to different fuel prices in different regions.
Government sources alleged that some opposition-ruled states have imposed higher VAT, adding to the burden on consumers.
As per the figures shared by sources, Telangana has some of the highest petrol prices at around Rs 118 per litre, followed by Kerala at Rs 114, Karnataka at Rs 110 and Tamil Nadu at Rs 107 per litre.
Meanwhile, BJP-ruled states such as Gujarat, Uttar Pradesh, Haryana and Assam, along with Delhi, were said to have relatively lower petrol prices, ranging between Rs 101 and Rs 104 per litre.
Diesel prices have also become part of the political debate.
Government sources claimed that some opposition-ruled states levy higher taxes on diesel, pushing prices above Rs 100 per litre in states such as Telangana and Kerala. In comparison, BJP-ruled states were said to have relatively lower diesel prices.
Meanwhile, sources said the Centre has reduced excise duty several times since 2021 to offer relief to consumers.
In March 2026, the government reportedly provided relief of up to Rs 10 per litre. Officials also claimed that fuel prices were kept under control during major global disruptions, including the Russia-Ukraine conflict and the Hormuz crisis.
Government sources also targeted the previous UPA government, alleging that oil bonds were issued during its tenure to manage fuel subsidies.
According to the current government, the financial burden is now directly borne through the Budget. Sources claimed that more than Rs 1.3 lakh crore has been paid towards oil bond liabilities since 2021.
During the Hormuz crisis, oil marketing companies (OMCs) reportedly faced heavy under-recoveries, according to sources.
The government claimed that nearly Rs 1,000 crore per day was absorbed as a financial burden to manage the situation. Sources also said that reductions in the Special Additional Excise Duty (SAED) had an estimated impact of Rs 30,000 crore on the Centre.