Fuel prices in India have shown remarkable stability as of April 11, even amidst global disruptions affecting supply chains and surging crude oil prices. Since the onset of conflict in West Asia, international oil prices have escalated by approximately 50%, surpassing $100 per barrel. Despite these fluctuations, Indian consumers have remained largely shielded from drastic price increases, thanks in part to government measures.
Current Fuel Rates in Major Indian Cities
The Indian government has introduced cuts in excise duty on petrol and diesel to mitigate inflationary pressures. Jio-BP, the country’s second-largest private fuel retailer, announced it would maintain current fuel prices despite the rising international oil prices. Jio-BP’s CEO, Akshay Wadhwa, emphasized that there are no immediate plans to increase fuel rates.
Market Impact of the Middle East Conflict
The ongoing military confrontation in the Middle East has notably impacted oil supply, particularly due to the closure of the strategically important Strait of Hormuz. This situation has led to pricing adjustments by some retailers. Nayara Energy, which is backed significantly by Russian oil giant Rosneft, recently increased petrol prices by ₹5 per litre and diesel prices by ₹3. Shell India has also raised its fuel prices across its 343 outlets.
Increase in Electric Vehicle Registrations
As fuel prices fluctuate, there has been a marked increase in electric vehicle (EV) registrations. The national capital reported a 29% rise in EV registrations for the fiscal year 2025-26 compared to the previous year, according to data from Envirocatalysts. This surge can be attributed to new EV policies and growing consumer concerns about future fuel price hikes.
- EV registrations rose from 83,512 in FY 2024-25 to 107,000 in FY 2025-26.
- CNG vehicle registrations also increased from 25,330 to 32,224.
- Conversely, diesel vehicle registrations dropped from 12,007 to 11,498, marking one of the lowest levels since 2019.
Future Expectations in Vehicle Trends
Experts predict that while the increase in EV registrations is significant, it has not yet substantially affected the market for petrol and CNG vehicles. However, the new EV policy is likely to encourage further growth in EV adoption and a gradual decline in traditional petrol and CNG vehicles. Sunil Dahiya from Envirocatalysts indicated that increased incentives could lead to a shift in consumer preferences towards EVs in the coming years.
