| Term | Definition | UPSC Significance |
|---|---|---|
| Under-Recovery | Difference between cost price of fuel and its retail selling price when OMCs sell below cost | ≠ Subsidy; government compensates OMCs separately |
| Administered Price Mechanism (APM) | Government-set fuel pricing framework (1975–2002) based on cost-plus principles | Preceded deregulation; key UPSC timeline anchor |
| Deregulation | Allowing OMCs to determine retail fuel prices based on market signals rather than government mandate | Petrol: 2010; Diesel: October 2014 |
| Dynamic Daily Pricing | Daily revision of petrol & diesel prices based on 15-day rolling average of global crude prices | Introduced 16 June 2017; effective since then |
| Trade Parity Pricing (TPP) | Post-APM method (2006) to set base price at refineries based on a weighted average of import and export parity prices | 80% import parity + 20% export parity |
| Brent Crude | Global benchmark crude oil price (North Sea); India uses this + the Indian crude basket as reference | Current: ~$107/barrel (May 2026) |
| Gross Refining Margin (GRM) | Revenue earned per barrel of crude oil after refining; measure of OMC profitability | IOCL highest GRM among PSU OMCs |
| Oil Pool Account | Fund maintained under APM to absorb price volatility; pooled cross-subsidisation between profitable and loss-making products | Abolished with APM dismantling in 2002 |
| Product | Pricing Status | GST Status | Key Notes |
|---|---|---|---|
| Petrol (Motor Spirit) | Deregulated (2010) | Excluded — Excise + VAT | Primarily private vehicle fuel |
| Diesel (High Speed Diesel) | Deregulated (Oct 2014) | Excluded — Excise + VAT | Used in transport, agriculture, industry |
| LPG (Domestic) | Partially regulated / subsidised | 5% GST | Pradhan Mantri Ujjwala Yojana beneficiaries get subsidy |
| Aviation Turbine Fuel (ATF) | Market-determined | Excluded from GST (currently) | 55th GST Council: maintained status quo |
| Crude Oil | Import-linked market price | Excluded — pending GST Council | India imports ~88% of crude requirement |
| Natural Gas | Regulated (govt. notified price) | Excluded — pending GST Council | Subject to Art. 279A(5) |
Central excise duty is a fixed per-litre charge (not ad valorem), while state VAT is a percentage-based charge. This is why a fall in crude prices does not produce a proportional drop at the pump — VAT value falls but excise stays fixed.
UPSC frequently confuses under-recovery ≠ subsidy. Under-recovery is an accounting concept (notional loss when OMC sells below import parity). A subsidy is a direct government payment. OMCs received compensation through oil bonds and budget transfers — not always classified as subsidy in official accounts.
Oil bonds worth ₹1,41,000 crore were floated by the UPA government to compensate OMCs for under-recoveries — these bonds are today's liability serviced by the current government's budget.
UPSC has asked about the year of diesel deregulation — it is October 2014, not 2013 or 2015. Also note: petrol (2010) was deregulated before diesel (2014) because diesel was seen as a "poor man's fuel" used in agriculture and transport.
| Provision | Content | Significance |
|---|---|---|
| Art. 279A(5) | GST Council shall recommend the date on which GST shall be levied on petroleum crude, high-speed diesel, petrol, natural gas, and ATF | Constitutionally keeps 5 petroleum products inside GST framework but defers levy to GST Council recommendation — they are technically "scheduled" but not yet taxed under GST |
| 7th Schedule — Union List (Entry 84) | Centre has power to levy excise duty on manufactured goods including petroleum products | Basis for Central Excise Duty on petrol & diesel |
| 7th Schedule — State List (Entry 54) | States have power to levy tax on sale of petroleum products (VAT/Sales Tax) | Why state VAT rates differ → why Delhi petrol ≠ Mumbai petrol |
| CGST Act — Section 9(2) | GST on excluded petroleum products (petrol, diesel, etc.) shall apply only from the date the GST Council recommends — no date yet notified | Legal basis for GST exclusion of fuels; government cannot unilaterally bring fuels under GST without Council recommendation |
| Essential Commodities Act, 1955 | Petroleum products can be regulated as essential commodities in supply and distribution | Government's legal tool to control hoarding, black-marketing of fuel in emergencies |
| Tax Component | Levied By | Rate (Petrol) | Rate (Diesel) | Nature |
|---|---|---|---|---|
| Basic Excise Duty | Central Govt. | ₹1.40/litre | ₹1.80/litre | Fixed per litre; devolved to states (41%) |
| Special Additional Excise Duty | Central Govt. | ₹13/litre (pre-March 2026: cut to ₹3) | ₹10/litre (cut to ₹0 from March 2026) | Fixed; NOT shared with states (cess component) |
| Road & Infrastructure Cess | Central Govt. | ₹5/litre | ₹5/litre | Earmarked for road/infrastructure; not devolved |
| Agriculture & Infrastructure Dev. Cess | Central Govt. | ₹2.50/litre | ₹4/litre | Earmarked cess; not in divisible pool |
| State VAT / Sales Tax | State Govt. | Varies: ~15–35% | Varies: ~12–25% | Ad valorem (%) — highest: Andhra Pradesh (31% VAT + cess) |
| Dealer Commission | — | 3.9% of price to dealer | 2.9% of price to dealer | Covers pump operating costs |
| Aspect | Current Status |
|---|---|
| Petrol & Diesel under GST? | No — excluded from effective GST regime despite being included in the constitutional schedule |
| Who decides? | GST Council (per Art. 279A(5) & Section 9(2) CGST Act) — Centre cannot act unilaterally |
| Central govt stance | Favours inclusion (Finance Minister Sitharaman, 53rd GST Council meeting, June 2024) |
| State opposition | States heavily oppose — VAT on fuel is their largest independent revenue source; inclusion under GST risks major revenue loss |
| Latest update | December 2025: Lok Sabha clarification — no proposal to bring petroleum under GST unless recommended by GST Council |
| ATF update | 55th GST Council: Status quo maintained — ATF also kept outside GST currently |
| If included under GST | Potential max rate = 28% GST — currently estimated retail price would fall significantly; but states would lose ~₹2 lakh crore/year in VAT revenue |
Students assume petrol is completely outside GST. That is wrong. Petrol is within the GST Act's scope (Art. 279A lists it). It is only the levy date that is pending GST Council recommendation. This nuance has been tested in UPSC.
Excise duty on fuel consists of two broad components: (i) basic excise duty — shared with states via Finance Commission formula (41% devolution); and (ii) cess and surcharge components — NOT shared with states. The Centre has used surcharge/cess hikes precisely to avoid sharing revenue with states.
Retail Fuel Price = Crude oil cost + Freight & Insurance + Refining cost + OMC margin + Central Excise Duty + Dealer commission + State VAT/local taxes
Crude, freight, excise duty, and dealer commission are uniform across India. Only State VAT and local cess vary — this is the sole reason why Delhi petrol ≠ Mumbai petrol ≠ Chennai petrol.
| Component | Approx. Amount (₹/litre) | % of Retail Price |
|---|---|---|
| Crude oil + Freight + Refining cost | ~₹52–56 | ~53–57% |
| OMC margin | ~₹3–5 | ~3–5% |
| Central Excise Duty (total) | ~₹11.90–19.90/litre (varies post cuts) | ~12–20% |
| Dealer Commission | ~₹3.9 (3.9% basis) | ~4% |
| State VAT (Delhi ~30% of post-excise price) | ~₹15–17 | ~15–17% |
| Total Retail Price (Delhi post May 2026 hike) | ₹97.77/litre | 100% |
Over 50% of petrol's retail price comprises taxes (Central Excise + State VAT + dealer margin). In case of diesel, the tax component is close to 40–49%.
| State | VAT on Petrol | Impact |
|---|---|---|
| Andhra Pradesh | 31% + ₹4/litre + cess | Highest in India |
| Maharashtra (Mumbai) | 25% + ₹5.12/litre | Among highest metro rates |
| Delhi | ~30% VAT on petrol | State levies ₹15.60/litre approx. |
| Tamil Nadu (Chennai) | ~13% | Lower; hence cheaper |
| Uttar Pradesh | 26.8% or ₹18.74/litre (higher) | Ad valorem or specific, whichever higher |
| Parameter | Indian Oil Corporation (IOCL) | Bharat Petroleum (BPCL) | Hindustan Petroleum (HPCL) |
|---|---|---|---|
| Founded / Nationalised | 1959 (Indian Oil Company) | 1952 (from Burmah Shell, nationalised 1976) | 1974 (from Caltex, nationalised) |
| PSU Category | Maharatna | Maharatna | Maharatna |
| Ministry | Ministry of Petroleum & Natural Gas | Ministry of Petroleum & Natural Gas | Ministry of Petroleum & Natural Gas (via ONGC) |
| Govt. Stake | >50% (Central Govt. direct) | >50% (Central Govt. direct) | 51.11% via ONGC (since Jan 2018) |
| Refineries Operated | 11 refineries; Group capacity ~80.55 MMTPA | 3 refineries: Mumbai, Kochi, Bina | 2 refineries: Mumbai (9.5 MT), Vizag (13.7 MT) |
| Refinery Throughput (FY23) | 72.4 MMTPA (highest) | 38.5 MMTPA | 19.1 MMTPA |
| No. of Petrol Pumps | ~36,700 (42% of total) | ~21,300 | ~21,300 |
| Market Share (Petroleum Products) | ~46% | ~21% | ~18% |
| Revenue FY23 | ₹9,34,953 cr (highest) | ₹5,32,104 cr | ₹4,64,684 cr |
| Gross Refining Margin (FY23) | $19.52/barrel | $12.64/barrel | $12.09/barrel |
| Ethanol Blending | LTPA for ethanol plants | LTPA for ethanol plants | LTPA for ethanol plants |
| Body | Type | Function |
|---|---|---|
| ONGC (Oil & Natural Gas Corporation) | Maharatna PSU — Upstream | Exploration & production of crude oil and natural gas; owns 51.11% of HPCL |
| Oil India Ltd (OIL) | Navratna PSU — Upstream | Crude oil & natural gas exploration, production; pipeline operations |
| Petroleum Planning & Analysis Cell (PPAC) | Govt. body under MoPNG | Data collection, analysis, and reporting on petroleum product prices, demand, supply |
| Directorate General of Hydrocarbons (DGH) | Govt. regulator | Upstream petroleum exploration and production regulation |
| Petroleum & Natural Gas Regulatory Board (PNGRB) | Statutory regulator | Regulates midstream: pipelines, city gas distribution; ensures fair access |
| Numaligarh Refinery Ltd (NRL) | Navratna PSU | Refinery in Assam; strategic for North-East connectivity |
In 2003, the Supreme Court (petition by CPIL) ruled that privatisation of HPCL and BPCL would require parliamentary approval — since they were nationalised by Acts of Parliament, their disinvestment requires repeal/amendment of those Acts.
UPSC often asks about ONGC's relationship with HPCL. Remember: ONGC acquired 51.11% stake in HPCL on 30 January 2018 (Cabinet approved July 2017) — making HPCL a subsidiary of ONGC while remaining a Maharatna PSU under MoPNG.
Under-recovery = (Import Parity Price of fuel) − (Retail Selling Price charged to consumer)
When OMCs sell fuel below its cost (import parity price), the notional "loss" per litre is an under-recovery. This is NOT the same as a government subsidy — it is an internal accounting concept reflecting how much OMCs are selling below market.
| Period | Mechanism | Who Bears? |
|---|---|---|
| APM Era (pre-2002) | Oil Pool Account absorbs volatility | Government (Oil Pool Account deficits) |
| UPA Era (2004–2014) | 3-way sharing: Government (via oil bonds) + Upstream PSUs (ONGC, OIL) + OMCs absorb part | Divided: 60% govt + 33% upstream + 7% OMC (approx.) |
| Post-Deregulation (2014–2022) | Theoretically: OMCs adjust price daily; if they absorb: under-recovery is OMC's problem | OMCs (recoverable later through excise cuts or profit phases) |
| 2022–2026 Price Freeze | OMCs absorbed losses voluntarily (political decision); Centre cut excise duty (March 2026 ₹10 cut) to reduce burden | OMCs primarily; Centre via excise sacrifice (₹14,000 cr/month revenue loss) |
Emkay Global estimated OMC stocks need a ₹15–20/litre hike to stop incurring losses entirely at Brent crude above $107/barrel. The ₹3/litre hike (May 2026) is therefore partial relief — OMC stocks fell 2–3% on the same day, reflecting market disappointment that losses persist.
IOC's largest quarterly loss in history was ₹7,486 crore for Q2 FY12 under the UPA government — a historic benchmark for OMC stress periods.
| Source / Region | Share / Status | Key Fact |
|---|---|---|
| Iraq | Historically largest single supplier | Gulf nation; Hormuz-transit route |
| Saudi Arabia | Major traditional supplier; competition with China for Saudi crude (2026) | Saudi East-West Pipeline bypasses Hormuz via Red Sea (Yanbu port) |
| UAE | Key Gulf supplier | Fujairah pipeline bypasses Hormuz via Gulf of Oman |
| Russia | ~1/3rd of imports (2024–2026); ~1.0 mbd recent months | Pivot began post-Ukraine war (2022); was just 2.5% in 2021; provides strategic buffer |
| USA, West Africa, Latin America | Non-Hormuz diversification sources | India now imports from ~40 countries |
| Strait of Hormuz (chokepoint) | ~50% of crude imports transited here (Jan–Feb 2026); reduced to 30% by March 2026 | ~20.9 mbd passes through globally — ~20% of global oil trade |
The Strait of Hormuz is a narrow waterway between Iran and Oman through which approximately 20% of global oil trade passes (~20.9 mbd, first half 2025). India had 2.6 mbd transiting Hormuz in Jan–Feb 2026 (~50% of its imports). During the West Asia crisis (Feb–March 2026), Iran declared Hormuz off-limits to foreign vessels — directly threatening India's energy security.
| Measure | Details |
|---|---|
| Import Diversification | Imports from 40 countries; 70% now routed outside Hormuz (March 2026) |
| Russian Crude Buffer | Russia's ~1/3 import share (ESPO pipeline, Arctic routes) bypasses Hormuz |
| Strategic Petroleum Reserve (SPR) | Underground storage at Visakhapatnam, Mangaluru, Padur (combined ~5 MMTL) |
| 24×7 Control Room | Ministry of Petroleum set up monitoring cell (March 2026) for petroleum stocks |
| Alternative Routes | Saudi East-West pipeline (Red Sea/Yanbu); UAE Fujairah pipeline; West African/US imports |
| Chabahar Port | India-developed port in Iran — alternate trade corridor to Central Asia; disrupted during Hormuz closure |
| Indicator | Normal | Impact (crude ~$100–120/bbl) |
|---|---|---|
| Current Account Deficit (CAD) | 0.7–0.8% of GDP | Could widen to 1.9–2.2% of GDP (ICRA estimate) |
| Inflation (CPI) | Contained | Fuel price hike feeds into transport & food costs → core inflation pressure |
| OMC Profitability | Normal margins | Massive under-recoveries; stock price erosion 24–28% |
| Fiscal Deficit | Target-bound | Pressure to cut excise (March 2026 ₹10 cut = ~₹14,000 cr/month revenue loss) |
| Rupee Pressure | Managed float | Higher oil bill → dollar demand → rupee weakness → further cost increase (spiral) |
| Linked Concept / Area | Article / Act / Term | Connection to Fuel Pricing |
|---|---|---|
| GST Council | Art. 279A(5); CGST Section 9(2) | Governs whether and when petroleum products can be taxed under GST; states block inclusion due to revenue dependence |
| Fiscal Deficit | FRBM Act, 2003 | Excise duty cuts on fuel → direct revenue sacrifice → fiscal deficit pressure; opposite: high excise → fiscal gains |
| Current Account Deficit (CAD) | BoP Accounting | India's oil import bill is largest CAD driver; $1 rise in crude adds ~$1.6 bn to annual import bill |
| Inflation (CPI / WPI) | Monetary Policy Framework | Diesel drives freight costs → food inflation; petrol drives personal mobility costs; fuel is an input for almost all production |
| Ethanol Blending Programme | National Biofuel Policy 2018 | OMCs (IOCL, BPCL, HPCL) entered LTPAs for ethanol plants; target 20% blending by 2025–26 to reduce crude import dependence |
| Energy Security | Integrated Energy Policy (2006); National Energy Policy | Fuel pricing policy directly impacts India's energy import dependency; diversification strategy is a national security matter |
| OPEC+ Decisions | International cartel output decisions | OPEC+ output cuts → global crude price rise → India import cost ↑; India has limited leverage (price taker) |
| Rupee-Dollar Exchange Rate | Forex / RBI Policy | Crude priced in dollars; rupee depreciation → imported crude costs more in rupee terms → OMC losses worsen |
| Input Tax Credit (ITC) | CGST Act | Businesses cannot claim ITC on petrol/diesel (excluded from GST) — raises operational costs for logistics, manufacturing |
| Strategic Petroleum Reserve (SPR) | Indian Strategic Petroleum Reserves Ltd (ISPRL) | Buffer against supply shocks; India has ~5 MMTL storage at 3 sites; part of IEA commitments |
| Parameter | Details |
|---|---|
| Policy | National Biofuel Policy, 2018 (amended 2022) |
| Target | 20% ethanol blending in petrol by 2025–26 (E20) |
| Current Status | India has substantially progressed; OMCs' LTPAs with dedicated ethanol plants (SBI/IOB/Indian Bank tripartite escrow) |
| Benefits | Reduces crude import dependence; supports farmers (sugarcane/maize); lowers carbon emissions; forex savings |
| Challenges | Engine compatibility; monsoon variability in feedstock; supply chain bottlenecks |
India's "deregulated" fuel pricing has a well-documented electoral freeze pattern — prices are held steady before state/general elections (voter sentiment management) and revised after elections conclude.
The May 2026 ₹3 hike came immediately after state assembly elections concluded. The previous revision (March 2025) had also been timed post-election. This informal "political deregulation" is a standard UPSC critical analysis point on the limits of fuel price reform in India.
Students say India has a "fully free market" in fuel pricing since 2014. That is incorrect. While officially deregulated, OMCs routinely freeze prices under government pressure during elections and crises — making it a hybrid administered-market system in practice.
OMCs announced a ₹3/litre hike on both petrol and diesel, effective 15 May 2026 — the first retail price revision since 21 March 2025. Delhi petrol rose from ₹94.77 → ₹97.77/litre; diesel from ₹87.67 → ₹90.67/litre. The hike was the first in ~14 months and came immediately after state assembly elections 2026 concluded. Brent crude was trading above $107/barrel at the time of revision, driven by West Asia tensions and Strait of Hormuz disruption.
The Centre announced a steep excise duty cut of ₹10/litre on both petrol and diesel, reducing petrol excise from ₹13 → ₹3/litre and diesel excise to zero. Brent crude had surged from ~$70 to ~$122/barrel amid the US-Israel-Iran conflict. Alongside this, the government imposed an export tax on petrol and diesel to prevent domestic supply from being diverted to international markets. The revenue sacrifice was ~₹14,000 crore/month to the Centre.
The Supreme Court of India shifted all miscellaneous day hearings to video conferencing to conserve fuel, following PM Modi's appeal for fuel conservation amid the West Asia energy crisis. Up to 50% of Supreme Court Registry staff were permitted to work from home on a rotational basis. The SC also arranged car-pooling among judges for "optimum utilisation of fuel."
The Ministry of Petroleum & Natural Gas confirmed that 70% of India's crude imports were now being routed outside the Strait of Hormuz, up from ~50% earlier in the year. India was importing crude from 40 countries by March 2026. A 24×7 control room was established to monitor petroleum stock levels amid the West Asia crisis. Inventories of petrol, diesel, and ATF were confirmed sufficient for short-term disruptions.
The Government of India, via a written reply in Lok Sabha (MoS Finance Pankaj Chaudhary), clarified that petroleum products and alcoholic beverages are not proposed to be brought under GST unless recommended by the GST Council. The reply noted the 55th GST Council had maintained status quo on ATF inclusion too. State governments' fiscal dependence on petroleum VAT revenue was cited as the key obstacle to GST inclusion.
OMC stocks fell 2–3% even after the ₹3/litre hike announcement (HPCL −2.65% to ₹376.75; IOC −2.45% to ₹141.15; BPCL −~2.5%). Emkay Global estimated ₹15–20/litre hike is needed for OMCs to stop incurring losses. Oil Minister Hardeep Singh Puri confirmed OMCs were bearing a loss of ~₹1,000 crore/day. Projected Q1 FY27 OMC losses: up to ₹1,00,000–1,20,000 crore.
The UPSC Prelims 2026 cycle will likely feature questions on: (a) the March 2026 excise duty cut + rationale, (b) Strait of Hormuz significance, (c) OMC under-recovery figures, and (d) the GST exclusion status (December 2025 Lok Sabha reply). Keep all four data points memorised with sources and month-year.
| Statement | True / False | Correct Explanation |
|---|---|---|
| Petrol was deregulated in India in 2014. | ❌ False | Petrol was deregulated in 2010; diesel was deregulated in October 2014. |
| Petrol and diesel are completely outside the scope of GST in India. | ❌ False | They are within GST's constitutional scope (Art. 279A lists them), but the GST Council has not notified a levy date — so they are not effectively taxed under GST. |
| Under-recovery is the same as a fuel subsidy. | ❌ False | Under-recovery is a notional accounting gap (import parity minus retail price). A subsidy is a direct government payment. They are related but not identical concepts. |
| Dynamic daily pricing for petrol and diesel in India was introduced in June 2017. | ✅ True | Daily revision of petrol and diesel prices began on 16 June 2017, replacing fortnightly revisions. |
| HPCL is fully owned by the Central Government. | ❌ False | HPCL is owned 51.11% by ONGC (since Jan 2018) — making it an ONGC subsidiary. The Central Government owns HPCL indirectly through ONGC. |
| India's excise duty on petrol is uniform across all states. | ✅ True | Central excise duty is a fixed per-litre charge and is uniform across India. State VAT varies; hence final retail prices differ. |
| The Administered Price Mechanism (APM) was completely abolished in 2010. | ❌ False | APM was dismantled on 1 April 2002, not 2010. 2010 is when petrol prices were deregulated. |
| India is the world's second-largest crude oil consumer. | ❌ False | India is the third-largest crude oil consumer globally (after USA and China). |
| All three major OMCs (IOCL, BPCL, HPCL) are Maharatna PSUs. | ✅ True | All three are classified as Maharatna PSUs under the Ministry of Petroleum & Natural Gas. |
Students mix up 2010 (petrol) and 2014 (diesel). Also confuse APM dismantled (2002) with petrol deregulation (2010). These are three separate events separated by years.
Never say petrol is "fully outside GST." The correct answer: Petrol is listed under GST's constitutional schedule per Art. 279A(5) but the GST Council has not notified a levy date. Under Section 9(2) of CGST Act, it remains effectively untaxed under GST.
HPCL is often described as "government-owned." More precisely: it is owned 51.11% by ONGC (since 30 January 2018), which is itself owned by the Central Government. Students who say "directly by Government of India" are imprecise.
TPP (Trade Parity Price) = 80% import parity + 20% export parity. Import parity = price at which India imports crude. Do not confuse: import parity pricing ≠ trade parity pricing. Under-recovery is calculated vs import parity price, not trade parity.
India has 23 refineries: 18 public sector + 3 private + 2 joint venture. Students often quote outdated figures. IOCL operates 11 of the 23 refineries (largest). Reliance (private) operates the Jamnagar refinery — the world's largest single-location refinery complex.
UPSC Economics Prelims questions on fuel pricing typically follow these formats: (a) statement-pair matching (APM dismantled year vs deregulation year), (b) assertion-reason on GST exclusion, (c) identification of the correct OMC characteristic, (d) which petroleum product is taxed under GST (trick: none currently, though all five are constitutionally scheduled). Expect at least one fuel pricing MCQ in Prelims 2026.
| Event / Policy | Year | Key Fact |
|---|---|---|
| APM Introduced | July 1975 | Cost-plus; Oil Pool Account; govt sets prices |
| APM Dismantled | 1 April 2002 | Partial liberalisation; not full deregulation yet |
| TPP (Trade Parity Pricing) | 2006 | 80% import + 20% export parity for refinery gate |
| Petrol Deregulated | 26 June 2010 | OMCs set retail prices independently |
| Diesel Deregulated | 18–19 Oct 2014 | Midnight; CCEA under PM Modi; market-determined |
| Daily Pricing Introduced | 16 June 2017 | 15-day rolling average mechanism |
| HPCL acquired by ONGC | 30 Jan 2018 | ONGC holds 51.11% of HPCL |
| GST Council status quo on ATF | 55th GST Council (2024–25) | ATF remains outside GST; petrol/diesel same |
| Lok Sabha: No GST on petrol | December 8, 2025 | MoS Finance written reply; GST Council must decide |
| Excise Duty Cut ₹10/litre | 27 March 2026 | Petrol: ₹13→₹3; Diesel: ₹10→₹0; export tax imposed |
| ₹3/litre Retail Price Hike | 15 May 2026 | First hike since March 2025; Brent crude $107+ |
India's total refining capacity: 249 MMTPA across 23 refineries (18 public + 3 private + 2 JV). IOCL operates 11 refineries — the most of any company. India is a net exporter of refined petroleum products despite importing ~88% of crude — making India a refinery hub of Asia.