New Delhi – Prime Minister Narendra Modi has revealed that the Indian government is currently shouldering a substantial monthly burden of ₹14,000 crore to prevent a sharp increase in domestic diesel prices. The decision aims to shield consumers from the volatility of global energy markets, particularly in the wake of the ongoing West Asia crisis and the Iran-US conflict.
Government Intervention Shields Consumers
Speaking at the India Today's Kisan Conference 2026, PM Modi highlighted the significant impact of international events on fuel costs. He stated that without government intervention, diesel prices could have surged by as much as ₹50 per litre. However, the government's move has restricted the actual price increase to a mere ₹7 per litre, absorbing the majority of the financial shock.
The Prime Minister emphasized that this measure is crucial for protecting various segments of society, including:
- Households: Mitigating the impact on daily budgets.
- Farmers: Reducing operational costs for agricultural machinery.
- Transport Operators: Preventing a steep rise in freight charges.
- Businesses: Stabilizing production costs and curbing potential inflation.
Diesel is an essential commodity for India's economy, fueling commercial transportation, agricultural activities, and numerous industrial operations. Unchecked price hikes could lead to increased food prices and broader inflationary pressures across the nation.
Current Fuel Prices Remain Stable
Despite the significant international cost pressures, petrol and diesel prices remained unchanged across major Indian cities on November 12, 2026. For instance, in New Delhi, petrol was priced at ₹102.12 per litre and diesel at ₹95.20 per litre. Mumbai saw petrol at ₹111.21 and diesel at ₹97.83 per litre, while Kolkata recorded prices of ₹113.51 for petrol and ₹99.82 for diesel.
This stability in retail prices underscores the government's ongoing commitment to buffer consumers from global energy market fluctuations, even as it continues to absorb a substantial financial burden.