No Fresh Fuel Price Cut Announced
Petrol and diesel prices are unlikely to see an immediate reduction after the government clarified in Parliament that it has not announced any fresh cut in fuel prices.
Minister of State for Petroleum and Natural Gas Suresh Gopi said the government does not directly decide petrol and diesel prices, as retail rates are market-driven and determined by public sector oil companies.
The clarification came in response to a question on whether falling international crude oil prices could lead to lower fuel prices in India.
Government Highlights Lower Price Increase In India
The government said petrol and diesel prices in India have risen much less than in several developed and neighbouring countries between June 2021 and June 2026.
In Delhi, petrol prices increased by 8.1% during the period, while diesel prices rose 11.5%.
By comparison, petrol prices increased by 70.6% in the US, 59.9% in France, 51.1% in Germany and 46.9% in the UK.
Neighbouring countries recorded much larger increases. Petrol prices rose 160.6% in Pakistan, 148.6% in Sri Lanka and 76% in Nepal.
Crude Oil Prices Surged To $136.68
The government also explained the pressure faced by India’s oil companies following the sharp increase in international crude prices.
India’s crude oil basket was around $69 per barrel in February 2026. It then surged to $136.68 per barrel in Marchbefore continuing to fluctuate because of geopolitical and market conditions.
According to the government, public-sector oil companies absorbed a significant portion of the increase instead of passing the entire rise on to consumers.
Oil Companies Reported Heavy Losses
The decision to absorb part of the increase came at a significant cost to the public-sector oil companies.
Indian Oil Corporation reported a loss of ₹2,662 crore in the first quarter of 2026-27. Bharat Petroleum Corporation reported a loss of ₹3,962 crorewhile Hindustan Petroleum Corporation reported a much larger loss of ₹11,526 crore.
The figures highlight the financial pressure faced by oil marketing companies as they attempted to shield consumers from the full impact of higher crude prices.
₹10 Per Litre Excise Duty Cut Already Made
The government also pointed out that it had already reduced excise duty on both petrol and diesel by ₹10 per litre in March 2026.
The move was intended to protect consumers from the impact of rising international crude prices, although it also resulted in a substantial reduction in government tax revenue.
The government has not announced another excise duty reduction or a fresh cut in retail petrol and diesel prices.
Fuel Prices Continue To Vary Across Cities
Petrol and diesel prices remain different across Indian cities because of variations in state taxes and local levies.
As of August, petrol costs ₹102.12 per litre in Delhi and ₹111.21 in Mumbai, while diesel is priced at ₹95.20 in Delhi and ₹97.83 in Mumbai.
In Chennai, petrol costs ₹107.77 and diesel ₹99.55 per litre. Bengaluru has petrol at ₹111.68 and diesel at ₹99.56.
For now, the government’s Parliament response makes clear that there is no new nationwide petrol or diesel price cut on the table, despite the easing of international crude prices.
Summary
The government has not announced any fresh reduction in petrol or diesel prices despite the decline in international crude oil prices. Minister Suresh Gopi said fuel rates are market-driven and decided by oil companies. The government highlighted that India’s fuel price increases have been lower than those in several other countries and pointed to the ₹10 per litre excise duty cut made in March 2026.