Diesel Price In India: Yearly History From 2004 To 2026

Over the last two decades, diesel prices in India have risen steadily, driven by surging global crude oil costs, geopolitical tensions, and fluctuating exchange rates. What once cost around ₹30 per litre in 2004 has now crossed ₹100 in several states and peak years, placing a noticeable burden on everyday consumers, transporters, and farmers alike.

Diesel Price Hike In India:

• India hiked petrol and diesel prices by around ₹3 per litre in Chennai, Mumbai, Kolkata, and Delhi.
• The revised fuel prices, effective from Friday (May 15), mark the first increase for retail consumers in the last four years.

History of Diesel Prices In India

Diesel prices in India have gradually risen from 1947 to 2026 due to changes in global crude oil prices, currency exchange movements, taxes, subsidies, and geopolitical developments. Before economic liberalisation in 1991, fuel prices were largely government-controlled, but over time, international crude oil trends and market-linked pricing became the key drivers of diesel rates in the country.

• Global crude oil prices play the biggest role in shaping diesel prices in India.
• A weaker Indian rupee makes crude oil imports more expensive for the country.
• Central excise duty and state VAT directly increase the retail fuel price consumers pay.
• Changes in refining, transportation, and distribution costs also affect diesel pricing.
• Global geopolitical tensions, wars, and supply disruptions often lead to sharp fluctuations in fuel prices.

Diesel Prices Hike Across Major Cities

Fuel prices were revised across major metro cities amid rising global crude oil rates, with Kolkata recording the highest hike and Chennai the lowest.

Diesel Prices in Key Years

Diesel prices have been fluctuating in India from 2004 to 2026 because of many factors. The following table shows the diesel price in India year-wise:

• In 1947, diesel was very cheap in India, costing only around 20–22 paise per litre because fuel prices were controlled and taxes were low.
• By 1970, diesel prices rose to about 75 paise per litre as the country’s fuel usage and economic activities increased.
• In 1990, diesel cost around Rs. 3.85 per litre, with prices still mainly decided by the government.
• By 2004, diesel prices had increased to nearly Rs. 30 per litre due to higher crude oil prices and taxes.
• In 2013, diesel prices crossed Rs. 65 per litre as global oil prices surged and fuel subsidies were reduced by the government.
• In 2014, diesel prices stayed mostly stable at around Rs. 65.82 per litre.
• In 2026, diesel prices were increased again because global tensions arose and uncertainty pushed the crude oil prices higher worldwide.

Diesel Prices In India from 2004 To 2026

Diesel prices in India have increased significantly over the last two decades, rising from around Rs. 30 per litre in 2004 to above Rs. 100 in 2025 before seeing a small decline in 2026. This increase has mainly been driven by higher global crude oil prices, taxes, inflation, and international geopolitical tensions affecting fuel supply.

In general, the price of diesel in India has been increasing from 2004 to 2026, mainly due to various reasons including government policies on global prices, taxation, and subsidies, rising exchange rates (for importing crude oil), and inflation. Of late, renewable energy has taken over diesel in vehicles, leading to a decline in consumer demand, which makes the trajectory of price more certain for the future, among other things.

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