Petrol Prices in India: A Long and Expensive Journey
Have you ever thought that why is petrol, which was once available for 25 paise, ₹100+ today? The history of Petrol prices in India is like a rollercoaster ride in which global crude oil, dollar exchange rate, and government taxes together decide the price. Let us understand this journey in a simple and desi way.
Journey of Petrol Prices in India from 1947 to 2025
Key Factors of Petrol:
- Crude Oil Prices: The biggest impact of the international market is from here.
- Rupee-Dollar Exchange Rate: When the rupee weakens, imports become expensive.
- Taxes (Excise + VAT): Government taxes make petrol costly.
- Refining Cost: The cost of refining and distribution in India also impacts the price.
- Geopolitical Events: War, supply chain issues are causing price jump.
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Petrol Price in Key Years From ₹0.25 to ₹105+
| Year | Avg. Price (₹/litre) | Highlights |
| 1947 | 0.25 – 0.27 | Initial rate after British Raj |
| 1970 | 0.90 | Slight growth, inflation impact |
| 1990 | 4.20 | Regulated price before liberalisation |
| 2004 | 33.71 | Impact of global crude prices begins |
| 2013 | 72.26 | Inflation + global rates combo |
| 2021 | 95.41 | COVID + taxes = spike |
| 2025 | 105.01 (est.) | Petrol remains high but EVs are on the rise |
Effect of Renewable Energy
Electric vehicles and the use of solar energy are reducing petrol demand a bit. But even now most of India’s transport is dependent on petrol/diesel, so the impact on prices will come gradually.
