India’s Fuel Prices Fall 3.1% Amid Excise Duty Cuts, Minister Says

Union Minister Hardeep Singh Puri asserted on Saturday that India’s energy supply remains stable, with fuel prices dropping 3.1% between May 2022 and May 2026, contrasting global trends where rates surged in countries like Pakistan and the U.S., according to a statement from the Ministry of Petroleum and Natural Gas.

Global Fuel Price Increases Highlight India’s Policy Shift

Puri cited data showing petrol prices in Pakistan rose 70% and in the U.S. by 35% over the same period, while India’s prices fell. “While the world saw 70-80% increases, India reduced prices by 3.1% under Prime Minister Narendra Modi’s leadership,” he said, attributing the decline to central excise duty cuts. The minister noted three reductions in November 2021, May 2022, and most recently, a ₹10-per-litre cut that added ₹1 lakh crore to the government’s fiscal burden.

Domestic Supply Chains Remain Resilient

India maintains over 60 days of crude oil and natural gas reserves, Puri said, with LPG stocks sufficient for 75-80 days. The minister highlighted increased domestic LPG production, rising from 32,000 metric tonnes (MT) daily in 2022 to 54,000 MT, reducing import dependence. Efforts to transition LPG users to piped gas are underway, he added.

E85 Fuel Expansion Aims to Boost Ethanol Blending

The government is accelerating its E85 fuel rollout, with 47 pumps operational in the National Capital Region. Targeting 500 pumps by December 2026 and 5,000 by 2027, the initiative aligns with India’s flex-fuel strategy to lower fossil fuel reliance. Puri emphasized the move as part of broader energy security efforts.

India Condemns U.S. Strike That Killed Three Seafarers

Puri confirmed India has lodged a strong protest over the U.S. military strike in the Gulf of Oman that killed three Indian seafarers. The government summoned the U.S. Charge d’Affaires twice, while External Affairs Minister S Jaishankar raised the issue with U.S. Secretary of State Marco Rubio, according to official statements.

Why the Excise Duty Cuts Matter for Consumers

The excise duty reductions have directly impacted retail fuel prices, with Puri stating that while global prices climbed, India’s approach minimized financial strain on households. However, the ₹1 lakh crore fiscal burden underscores the trade-offs between affordability and budgetary constraints. Analysts note that similar policies in other nations, such as Brazil’s ethanol incentives, offer comparative models for India’s energy transition.

Comparing Global Fuel Price Trends

India’s 3.1% price drop contrasts sharply with Pakistan’s 70% surge and France’s 47% increase. The U.S. saw a 35% rise, while Bangladesh’s petrol prices climbed 36%. These disparities highlight the varying impacts of geopolitical tensions, such as the Iran conflict, on national economies. India’s strategy, focused on domestic production and taxation, has kept consumer costs lower than in many peers.