The Ministry of Petroleum & Natural Gas on March 24th 2025 has outlined a series of proactive measures aimed at stabilizing fuel prices and ensuring energy security for the country. Recent actions, including price reductions and strategic diversification of crude oil imports, have played a significant role in the price stability of petrol, diesel, and LPG across India.
Lower Petrol and Diesel Prices: A Relief for Consumers
As of March 2024, the prices of petrol and diesel in Delhi have dropped to:
- Petrol: Rs. 94.77 per litre
- Diesel: Rs. 87.67 per litre
This reduction comes as a result of several initiatives, including a cut in Central Excise duties by the government, which reduced petrol prices by Rs. 13 per litre and diesel by Rs. 16 per litre in 2021 and 2022. These cuts were fully passed on to consumers, and some state governments also reduced VAT to ease the financial burden. Additionally, Public Sector Oil Marketing Companies (OMCs) further cut retail prices by Rs. 2 per litre in March 2024.
India has been a rare example among major economies, where fuel prices have actually decreased in recent years. Here’s a comparison of price changes for petrol and diesel in different countries between November 2021 and January 2025:
Petrol and Diesel Price Changes (Nov 2021 – Jan 2025)
| Country | Petrol Price Change (%) | Diesel Price Change (%) |
| India (Delhi) | -13.60% | -10.92% |
| France | 14.21% | 15.08% |
| Germany | 7.87% | 12.43% |
| Italy | 8.65% | 11.39% |
| Spain | 8.67% | 12.93% |
| UK | 0.08% | 2.61% |
| Canada | 10.52% | 23.05% |
| USA | 4.83% | 12.86% |
Price Changes in Neighboring Countries (Nov 2021 – Jan 2025)
| Country | Petrol Price Change (%) | Diesel Price Change (%) |
| India (Delhi) | -13.60% | -10.92% |
| Pakistan | 29.76% | 34.97% |
| Bangladesh | 13.94% | 30.82% |
| Sri Lanka | 53.98% | 101.59% |
| Nepal | 22.02% | 31.32% |
LPG Prices: A Big Relief for Ujjwala Beneficiaries
India’s reliance on imported LPG, which accounts for 60% of domestic consumption, often makes price stabilization challenging. However, despite global LPG prices increasing by 63% from July 2023 to February 2025, the government has worked hard to keep the cost manageable for consumers, particularly for low-income families.
Thanks to the Pradhan Mantri Ujjwala Yojana (PMUY), over 10.33 crore beneficiaries have access to affordable cooking gas. While the global price of LPG has risen, the government has managed to keep the effective price for PMUY beneficiaries 44% lower, reducing it from Rs. 903 in August 2023 to Rs. 503 in February 2025. This has been a huge relief for households that previously relied on more polluting and less efficient fuels like firewood.
For the general consumer, the retail price for a 14.2 Kg LPG cylinder in Delhi stands at Rs. 803, but with the PMUY subsidy, the effective price is reduced to Rs. 503.
LPG Price Comparison (1st January 2025)
| Country | Domestic LPG (Rs./14.2 kg cylinder) |
| India | 503.00* |
| Pakistan | 1094.83 |
| Sri Lanka | 1231.53 |
| Nepal | 1206.65 |
Diversifying Crude Oil Imports for Stability
In response to global supply uncertainties, the government has taken steps to diversify India’s sources of crude oil imports. By sourcing crude from different regions across the globe, Public Sector Undertakings (PSUs) ensure that any geopolitical or economic disruptions in one region don’t affect the nation’s supply security. This diversification helps reduce risks associated with over-dependence on a single region for crude oil.
Boosting Domestic Oil and Gas Production
India is also working on increasing its domestic production of oil and gas, reducing the need for imports and enhancing energy security. Some of the key policy initiatives include:
- Early Monetization of Hydrocarbon Discoveries (2014)
- Hydrocarbon Exploration and Licensing Policy (HELP) (2016)
- Incentives for Enhanced Recovery Methods (2018)
- Policy for Exploration of Unconventional Hydrocarbons (2018)
Additionally, the government has committed Rs. 7,500 crore to acquire seismic data for onshore and offshore areas, ensuring better exploration and more efficient use of domestic energy resources.
Promoting Cleaner Energy with Compressed Bio-Gas (CBG)
As part of its broader energy transition strategy, the government has been encouraging the use of compressed bio-gas (CBG) as a cleaner alternative to traditional fuels. Through initiatives like Sustainable Alternative Towards Affordable Transportation (SATAT), India is pushing towards a cleaner, more sustainable energy future. CBG, produced from organic waste, is an eco-friendly solution for both energy generation and waste management, while also reducing India’s carbon footprint.
Conclusion
The government’s multi-pronged approach to managing fuel prices, boosting domestic production, and promoting alternative energy sources is setting India on the path to a more secure and sustainable energy future. From reducing the burden of rising global fuel costs to ensuring that clean energy alternatives are available, these efforts are vital in securing energy for millions of households across the country. With a focus on domestic production, diversification, and renewable energy, India is steadily working towards reducing its reliance on external sources and building a self-sufficient energy ecosystem for future generations.
