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

Petrol prices in India have witnessed significant fluctuations over the past two decades. Since the early 2000s, various factors such as global crude oil rates, government policies, and geopolitical developments have influenced price movements. What began as relatively modest pricing in the early 2000s has now reached record highs in 2026. In this blog, we take a closer look at the petrol price trend in India from 2004 to 2026 and the key reasons behind its steady rise.

Petrol Price Hike In India:

• India hiked petrol and diesel prices by around ₹3 per litre in Chennai, Mumbai, Kolkata, Delhi.
• The revised fuel prices, effective from Friday (May 15), mark the first increase for retail consumers in the last four years.
• Premium Petrol variants like Speed and Power are now costlier by ₹2 due to rising international crude oil prices.

History of Petrol Prices In India

Petrol prices in India have steadily increased since independence, driven by 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, global crude prices began playing a larger role thereafter, even though regulation continued. Here are the key factors that have influenced 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: A weaker rupee increases the cost of oil imports in the country. 
• Excise Duty and VAT: Government-imposed taxes significantly impact retail prices. 
• Refining and Distribution Costs: Fluctuations in refining costs influence the final petrol price in India. 
• Geopolitical Factors: Uncertain events like wars and supply chain disruptions can negatively affect petrol prices in India. 

Petrol Prices Hike Across Major Cities

Fuel prices have increased across major metro cities following the government’s latest revision amid rising global crude oil prices. Kolkata witnessed the highest increase, while Chennai saw the lowest hike among the four metros.

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 price more certain for the future among other things.

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