Petrol Price in India: Year-Wise History From 1947 to 2026

Petrol price fluctuations in India various factors such as global crude oil rates, government policies, and geopolitical developments, as of now 2026, petrol prices are significantly higher than they were two decades ago. In this blog, we look at how petrol prices have changed in India from 2004 to 2026 and what caused these changes over the years.

Key Highlights

•  Government Announced Petrol Price Hike on 4 metro cities in 2026.
• Average Petrol Price in 2026 stands at ₹102 per litre.

History of Petrol Prices In India

Petrol prices in India have constantly increased since the day of independence, driven by multiple factors such as global crude oil price fluctuations, rupee-dollar exchange rate volatility, and government decisions on taxes and subsidies.

While prices were strictly regulated before the 1991 economic liberalisation in India, global crude prices were began playing a larger role even though strict regulation. Here are the key factors that have majorly influenced the petrol prices in India from 1947 to 2026:

• Global Crude Oil Prices: This is the most significant determining factor of petrol prices in India history.
• Exchange Rate: When the rupee value decreases the cost of oil on imports in the country increases.
• Excise Duty and VAT: Government imposes multiple taxes on petrol that significantly impact retail petrol prices.
• Refining and Distribution Costs: Oil refining companies purchase crude and refine it to petrol in refineries based on the process the prices of petrol will fluctuate.
• Geopolitical Factors: Under uncertain situations like wars, recession, and supply chain disruptions can negatively affect petrol prices in India.

Petrol Prices Hike Across Major Cities in 2026

Across 4 major metro cities following the government’s latest revision amid rising global crude oil prices. Kolkata has witnessed the highest increase of 3.29₹, while Chennai saw the lowest hike of 2.83₹.

Petrol Prices in Key Years

Between the years of 1947 and 2026, petrol prices in India have witnessed an upward trend, the reasoning for which is given below:

• Price of Petrol in 1947: In 1947, petrol in India was approximately Rs. 0.25 and Rs. 0.27 per litre. Today, this price is much higher due to inflation, increased exchange rates, and state taxes. 
• Price of Petrol in 1970: In 1970 the price of petrol increased at a lower rate than in 1947. The petrol price in India in 1970 was Rs. 0.90 per litre.
• Price of Petrol in 1990: The government of India regulated the price of petrol before economic liberalisation, whereas in 1990, a litre of gasoline was around Rs. 4.20.
• Price of Petrol in 2004: The price of petrol in India was by the end of 2004 around Rs. 33.71 per litre.  
• Price of Petrol in 2013: By 2013, petrol prices in India had increased to around double that of 2004. In 2013, petrol was around Rs. 72.26 per litre.
• Price of Petrol in 2014: Petrol prices in India in 2014 remained fairly constant at around Rs. 72.43 per litre.
• Price of Petrol in 2026: Amid escalating global tensions and geopolitical issues Premium Petrol price was hiked by ₹2 effective from 20 March 2026.

Petrol Prices In India from 2004 To 2026

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

In general, the price of petrol in India has been increasing from the period of 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 petrol in vehicles, leading to a decline in consumer demand, which makes the trajectory of prices more certain for the future, among other things.

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