India keeps fuel prices steady amid crisis

Added: 2026-05-24

[00:00:00]Now, as the world battles a rising fuel prices and uncertainty, India has adopted a multi-layered strategy to protect consumers and maintain stability. Tapas Bhattacharya takes a look at how India is handling the global energy crisis.

[00:00:21]The Russia-Ukraine war and the Strait of Hormuz disruption triggered one of the biggest global energy shocks in decades.

[00:00:28]Countries across the world witnessed sharp increases in petrol and diesel [music] prices, fueling inflation and economic uncertainty. But, India chose a different [music] strategy, absorbing the shock instead of passing the full burden to consumers.

[00:00:44]The government of India reduced excise duties [music] multiple times between 2021 and 2026 to provide direct relief to citizens.

[00:00:53]Public sector oil companies were also asked to absorb losses during periods of peak volatility. Even when global crude prices surged sharply, fuel prices in India remained largely stable for over 2 months during the Hormuz [music] crisis.

[00:01:10]Instead of transferring the entire impact to consumers, the center and oil companies absorbed massive financial losses. The March 2026 fuel [music] duty cut alone cost the exchequer nearly 30,000 crore rupees.

[00:01:25]Oil marketing companies were absorbing losses of nearly 1,000 crore rupees every single day during the peak of the crisis.

[00:01:36]While many countries saw fuel prices rise dramatically, India recorded one of the lowest increases [music] among major economies. Several nations experienced fuel hikes between 20 and 80%. India's increase remained close to just 5%. India also moved aggressively to secure domestic fuel supplies. Export levies were imposed on diesel and aviation fuel to ensure Indian produced fuel remained within the country and supply chains stayed stable. At the same time, India accelerated investments in renewable energy, green hydrogen, electric mobility, and biofuels to reduce long-term dependence on imported crude oil.

[00:02:22]Fuel prices also vary across India because of state-level VAT. While central excise remains uniform [music] nationwide, different VAT rates imposed by states create differences in retail [music] prices. States with lower VAT continue to offer cheaper fuel to consumers.

[00:02:41]As global energy markets remain volatile, India's balancing act between consumer relief, fiscal management, and [music] energy security is emerging as a key part of its economic strategy in uncertain times.

[00:02:56]Tapas Bhattacharya's report for DD India.