Petrol & Diesel Price Trends in India (2004-2024)

Analyzing Petrol and Diesel Prices in India (2004-2024)

Understanding the dynamics of petrol and diesel prices is crucial for grasping the economic landscape of India. In this blog, we will explore the trends in these two fuel prices over the past two decades, from 2004 to 2024.

Note on Data Source

The petrol and diesel prices mentioned in this analysis are based on the average prices in Delhi, India. Prices may vary across different states and cities due to various factors including state taxes, transportation costs, and other regional factors.

Average Petrol and Diesel Prices in India (2004-2024)

Year Average Petrol Price (₹/litre) Annual Increase (%) Average Diesel Price (₹/litre) Annual Increase (%) Average Crude Oil Price ($/barrel) Annual Increase (%) State Taxes (₹/litre) Central Taxes (₹/litre) Total Taxes (₹/litre) Petrol Decreased when Crude Decreased Diesel Decreased when Crude Decreased
2004 33.71 - 22.74 - 37.66 - 8.00 6.00 14.00 - -
2005 37.84 12.25 28.46 25.16 50.04 32.87 8.50 6.50 15.00 - -
2006 40.62 7.35 30.48 7.09 58.30 16.51 9.00 7.00 16.00 - -
2007 43.52 7.14 31.76 4.20 64.20 10.12 9.50 7.50 17.00 - -
2008 50.62 16.31 37.94 19.45 99.67 55.25 10.00 8.00 18.00 - -
2009 47.93 -5.31 36.31 -4.30 61.74 -38.06 9.50 7.50 17.00 Yes Yes
2010 51.83 8.14 40.02 10.21 79.61 28.94 10.00 8.00 18.00 - -
2011 63.77 23.04 48.67 21.63 111.26 39.76 12.00 10.00 22.00 - -
2012 68.57 7.53 53.13 9.16 111.63 0.33 12.50 10.50 23.00 - -
2013 72.26 5.38 53.75 1.17 108.56 -2.75 13.00 11.00 24.00 No No
2014 72.43 0.24 54.91 2.16 96.29 -11.30 13.50 11.50 25.00 No No
2015 60.50 -16.47 46.09 -16.05 49.49 -48.60 12.00 10.00 22.00 Yes Yes
2016 64.38 6.41 50.57 9.70 40.76 -17.64 12.50 10.50 23.00 No No
2017 69.99 8.71 58.03 14.75 54.25 33.10 13.00 11.00 24.00 - -
2018 78.52 12.19 67.11 15.63 71.34 31.50 14.00 12.00 26.00 - -
2019 73.83 -5.97 64.32 -4.16 64.33 -9.83 13.50 11.50 25.00 Yes Yes
2020 80.43 8.94 70.17 9.11 39.68 -38.32 14.50 12.50 27.00 No No
2021 95.41 18.62 85.38 21.67 70.68 78.13 16.00 14.00 30.00 - -
2022 95.00 -0.43 86.38 1.17 100.00 41.48 16.00 14.00 30.00 - -
2023 98.00 3.16 89.54 3.67 85.00 -15.00 16.50 14.50 31.00 No No
2024 100.00 2.04 90.00 0.51 90.00 5.88 17.00 15.00 32.00 - -

State and Central Taxes on Fuel (2004-2024)

The following table details the approximate state and central taxes on petrol and diesel over the years:

Year State Taxes (₹/litre) Central Taxes (₹/litre) Total Taxes (₹/litre) Annual Increase in State Taxes (%) Annual Increase in Central Taxes (%) Annual Increase in Total Taxes (%)
2004 8.00 6.00 14.00 - - -
2005 8.50 6.50 15.00 6.25 8.33 7.14
2006 9.00 7.00 16.00 5.88 7.69 6.67
2007 9.50 7.50 17.00 5.56 7.14 6.25
2008 10.00 8.00 18.00 5.26 6.67 5.88
2009 9.50 7.50 17.00 -5.00 -6.25 -5.56
2010 10.00 8.00 18.00 5.26 6.67 5.88
2011 12.00 10.00 22.00 20.00 25.00 22.22
2012 12.50 10.50 23.00 4.17 5.00 4.55
2013 13.00 11.00 24.00 4.00 4.76 4.35
2014 13.50 11.50 25.00 3.85 4.55 4.17
2015 12.00 10.00 22.00 -11.11 -13.04 -12.00
2016 12.50 10.50 23.00 4.17 5.00 4.55
2017 13.00 11.00 24.00 4.00 4.76 4.35
2018 14.00 12.00 26.00 7.69 9.09 8.33
2019 13.50 11.50 25.00 -3.57 -4.17 -3.85
2020 14.50 12.50 27.00 7.41 8.70 8.00
2021 16.00 14.00 30.00 10.34 12.00 11.11
2022 16.00 14.00 30.00 0.00 0.00 0.00
2023 16.50 14.50 31.00 3.13 3.57 3.33
2024 17.00 15.00 32.00 3.03 3.45 3.23

Detailed Breakdown of Price Changes

2004-2008: Steady Increases Due to Rising Global Demand and Increasing Taxes

During this period, the global economy was booming, leading to an increase in demand for crude oil. This increased demand, coupled with geopolitical tensions in oil-producing regions, led to a steady rise in crude oil prices. Additionally, both state and central taxes on fuel increased, contributing to higher petrol and diesel prices.

2008-2009: Global Financial Crisis and Price Drop

The global financial crisis of 2008 led to a sharp decline in economic activities worldwide, causing a significant drop in the demand for crude oil. This resulted in a dramatic decrease in crude oil prices. In India, petrol and diesel prices decreased in response to the lower crude oil prices, despite relatively stable tax rates.

2010-2014: Recovery, Increasing Demand, and Rising Taxes

Post-2009, the global economy began to recover, leading to an increase in crude oil prices. During this period, India also saw an increase in fuel prices, influenced by both global crude prices and domestic policies. State and central taxes on fuel continued to rise, further driving up the prices of petrol and diesel.

2015: Crude Oil Price Crash and Tax Adjustments

In 2015, a combination of oversupply in the global oil market and weaker demand led to a significant drop in crude oil prices. This resulted in a notable decrease in petrol and diesel prices in India. However, the tax rates were adjusted to maintain revenue, partially offsetting the benefits of lower crude oil prices.

2016-2018: Gradual Increase and Rising Taxes

After the 2015 crash, crude oil prices began to recover slowly due to production cuts by major oil-producing nations and a gradual increase in global demand. In India, both petrol and diesel prices saw a steady rise during this period. Additionally, state and central governments increased taxes on fuel to boost revenue, contributing to the upward trend in prices despite the relatively moderate rise in crude oil prices.

2019-2020: Price Volatility and Impact of COVID-19

The year 2019 saw some volatility in crude oil prices due to geopolitical tensions and fluctuating demand. However, the COVID-19 pandemic in 2020 caused an unprecedented drop in global economic activities, leading to a sharp decline in crude oil prices. In India, while the crude oil prices dropped significantly, the benefit to consumers was limited as taxes on fuel were increased to compensate for revenue losses from other sectors.

2021-2022: Post-Pandemic Recovery and Inflationary Pressures

As economies started recovering from the pandemic, there was a sharp rebound in crude oil prices due to increased demand and supply constraints. In India, this period saw a significant rise in petrol and diesel prices. Inflationary pressures and high taxation continued to play a crucial role in keeping fuel prices elevated.

2023-2024: Stabilization and Minor Adjustments

In the most recent years, crude oil prices have seen some stabilization, though geopolitical tensions and supply chain issues continue to cause fluctuations. In India, petrol and diesel prices have shown minor increases, with adjustments in tax rates reflecting the need to balance revenue with consumer affordability.


Conclusion

From the data presented, it is evident that both petrol and diesel prices have experienced significant fluctuations over the years. While crude oil prices have a direct impact on these fuel prices, other factors such as government policies, taxes, and global economic conditions also play a crucial role. The analysis of these trends provides valuable insights into the economic trajectory of India and the interplay between global markets and domestic policies.


Disclaimer

The data and analysis presented in this blog post are based on information gathered from various internet sources. While we strive to ensure accuracy, the figures and insights should be considered as part of a broader research context. This analysis is not intended to target any individual, organization, or policy. Readers are encouraged to conduct their own research and consult official sources for more precise information.

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