Revisiting India’s Steepest Fuel Price Jumps As Concerns Over More Hikes Grow

Concerns over possible fuel price hikes have intensified a day after Prime Minister Narendra Modi’s appeal urging citizens to cut fuel consumption and adopt austerity measures amid rising global oil prices due to the ongoing US-Iran war.

PM Modi had urged citizens to reduce the use of petrol and diesel, opt for carpooling, use public transport, and even return to Covid-era habits like work-from-home to conserve fuel. He also called for reduced gold purchases and limited foreign travel for a year to help preserve foreign exchange reserves.

The appeal comes as global crude prices have surged following the war in West Asia, now in its tenth week. Despite the global spike, state-owned oil marketing companies (OMCs) in India have continued supplying

petrol, diesel and LPG at rates significantly below international levels.

While retail fuel prices in India have largely remained unchanged for nearly two years, the sustained rise in global input costs has revived fears of a correction. Petrol and diesel continue to be sold at rates far below cost despite international prices rising sharply since the conflict began.

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Against this backdrop, attention has turned to historical fuel price movements in India, particularly the steepest hikes seen before the introduction of daily price revisions in June 2017.

2012 Record Spike

The steepest single-day petrol price hike was recorded on May 23, 2012, when prices jumped by around Rs 7.54 per litre in Delhi under the UPA government. The hike, driven by a weakening rupee and high global crude prices, triggered widespread political backlash and public protests at the time.

Other Major Pre-2017 Hikes

Between 2008 and 2014, several one-time increases of Rs 5 or more were recorded during periods of global oil volatility. These adjustments were typically linked to fortnightly pricing revisions, fluctuating crude oil prices, and currency depreciation.

Post-2017 Daily Revision Era

Since June 2017, fuel prices have been revised daily by oil marketing companies based on international benchmarks. While individual hikes are smaller—often between 10 paise and Rs 1—cumulative increases have been significant during volatile phases.

In March 2022, petrol prices rose by around Rs 5.60 per litre over just nine days, one of the sharpest short-term increases since the new pricing system was introduced. Earlier, during 2021, continuous daily increases pushed petrol beyond Rs 100 per litre in several cities for the first time.

Although not single-day hikes, fuel prices reached historic highs between late 2021 and mid-2022, with petrol touching around Rs 110 per litre in Delhi and even higher in some cities, while diesel crossed the Rs 100 mark in several states.