New Delhi: A fresh debate over fuel pricing erupted in Parliament and across public circles today after new official data indicated that crude oil prices in 2024–25 are nearly the same as they were in 2013–14, while petrol prices remain substantially higher than a decade ago. The figures were presented by Minister of State for Petroleum and Natural Gas, Suresh Gopi, in a written reply to Lok Sabha Unstarred Question No. 2026.
The data, which spans two decades from 2004–05 to 2024–25, reveals that the Indian Basket of Crude Oil averaged ₹6,383 per barrel in 2013–14, while in 2024–25 the average stands at ₹6,643 per barrel. This marginal difference has raised questions about why petrol prices, which were around ₹70 per litre in 2013–14, still hover near ₹95 per litre in 2024–25, despite similar crude import rates.
According to a data , which is submitted to Parliament, the average retail selling price (RSP) of petrol in New Delhi in 2013–14 was ₹69.76 per litre. In contrast, the average for 2024–25 is ₹94.74 per litre, indicating an increase of nearly ₹25 per litre despite crude oil prices being almost unchanged compared to that period. The data on crude oil shows sharp fluctuations over the years, including steep rises during global disruptions and dips in years such as 2015–16 and 2020–21. However, the latest figures confirm that current crude oil prices have stabilised close to historical levels seen in the UPA-II era. Despite this, retail fuel prices remain far above earlier levels, prompting lawmakers and citizens to demand an explanation.
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The Minister did not comment on taxes or the pricing structure in his reply, as the question focused solely on year-wise crude and petrol price data. However, the figures themselves have renewed scrutiny of India’s fuel taxation framework. Petrol and diesel prices are influenced not only by crude oil costs, but also by central excise duty, state VAT, dealer commissions, OMC margins, and freight charges. Over the past decade, multiple revisions in excise duty structures have contributed significantly to retail price increases.
When crude prices had spiked in 2022–23 to a high of ₹7,488 per barrel, petrol prices at the pump were around ₹97–98 per litre, almost the same as today, even though crude has since fallen by more than ₹800 per barrel. This discrepancy suggests “room for immediate reduction” in fuel prices to ease the burden on households and small businesses.
The data also highlighted that the gap between crude oil prices and petrol prices has widened gradually since 2014–15. In that year, crude prices fell sharply from ₹6,383 to ₹5,145 per barrel due to a global crash, yet domestic petrol prices decreased only slightly, from ₹69.76 to ₹66.37 per litre. Since then, while crude prices saw further dips to as low as ₹3,022 per barrel in 2015–16 the corresponding petrol price reduction was modest, reaching ₹61.59 per litre. Over the following years, even moderate increases in crude led to higher retail prices, indicating that fuel taxes have played a growing role in determining prices at the pump.
In recent months, as global crude prices remained stable and domestic inflationary pressures eased, public expectation has grown for a downward correction in petrol and diesel rates. Industry analysts say that with crude oil averaging ₹6,643 per barrel in 2024–25, compared to ₹6,836 in 2023–24 and ₹7,488 in 2022–23, fuel prices could be reduced if the government chooses to adjust duties.
Representatives of small transport operators, auto-rickshaw drivers, and freight organizations argue that high fuel costs continue to push up logistics expenses, affecting prices of essential goods and impacting the broader economy. They say that at a time when crude is not exerting upward pressure, there is both economic and moral justification for reducing pump prices.
The oil marketing companies, however, maintain that they continue to bear the volatility of international markets and the costs associated with refining, distribution, and supply chain disruptions. They also note that under-recoveries on LPG and subsidies offered in past years have added financial burdens, influencing the government’s pricing decisions.
Still, the central question remains: if crude prices today closely resemble those of 2013–14, why do petrol and diesel cost significantly more? Parliamentary discussions scheduled for later this session are expected to explore this anomaly in detail, with several members planning to demand transparency in the fuel pricing formula and a potential slash in duties.
Citizens and economists alike are now watching the government’s next steps, especially with the Budget Session approaching. With the data clearly showing a near-parallel crude price trajectory between 2013–14 and 2024–25, pressure is mounting on the government to offer relief at the fuel pumps. Whether the Centre acts on these demands could determine the economic sentiment heading into 2026, especially for households already coping with increased costs across multiple sectors.
