Gandhinagar: Gujarat has recorded one of the lowest petrol retail prices in the country at ₹99.1 per litre, according to state-wise fuel price data released after the latest revision on May 23, 2026. The figures place Gujarat at the lower end of the price spectrum, offering motorists comparatively cheaper fuel amid continued volatility in global energy markets.

The development comes at a time when global crude supply chains continue to face disruptions due to geopolitical tensions, including the Russia–Ukraine conflict and concerns over the Strait of Hormuz. Despite international uncertainty, India has managed to keep fuel price increases relatively moderate through a series of fiscal interventions and government measures.

The data also indicate that several BJP-ruled states have relatively lower petrol prices. Other BJP-governed states such as Uttar Pradesh and Delhi reported petrol rates of ₹99.5 per litre, while Haryana stood at ₹99.7 and Goa at ₹101.3.

In contrast, states with higher petrol prices included Andhra Pradesh at ₹117.8 per litre, despite being governed by the NDA alliance that includes the BJP, while Telangana at ₹115.7 and Kerala at ₹112.3 both ruled by opposition parties sell the most expensive fuel in the nation.

The variation in petrol prices is largely driven by state-imposed Value Added Tax (VAT), cess, local levies and transportation costs. Since fuel pricing includes both central excise duties and state taxes, retail prices vary considerably across states.

Global Context: India vs the World

While several countries have witnessed sharp fuel inflation, India’s petrol and diesel prices increased by only 5.0% and 5.3%, respectively, between February and May 2026. This was significantly lower than several other nations:

• Myanmar: Petrol prices surged by 89.7%
• Pakistan: Prices climbed by 54.9%
• United States: Consumers saw a 44.5% increase
• United Kingdom: Prices rose by 19.2%

A Strategy of Fiscal Intervention

The relative stability of fuel prices in India has been attributed to a multi-year strategy involving central excise duty cuts and the absorption of international price shocks by the government and Oil Marketing Companies (OMCs).

Key fiscal measures include:

• Successive excise cuts: Major reductions were implemented in November 2021 and May 2022, followed by additional cuts in 2024 and 2025.
• Zero diesel duty: On March 27, 2026, ahead of the Hormuz-related disruption, the government reduced the Special Additional Excise Duty (SAED), effectively bringing diesel duty to zero while absorbing the financial impact.
• OMC revisions: Fuel prices remained stable for over two months during the West Asia crisis. After nearly four years of largely steady rates, OMCs resumed periodic revisions in May 2026. The latest increase on May 23 added ₹0.87 per litre to petrol and ₹0.91 per litre to diesel.

The Financial Cushion

This protection for consumers has come at a significant fiscal cost. Between February 23 and May 23, 2026, the government and OMCs reportedly absorbed around ₹30,000 crore during the 84-day Hormuz disruption to shield consumers from major price shocks.

The government has also cleared historical liabilities by redeeming more than ₹1.30 lakh crore in principal and interest linked to UPA-era oil bonds.

Additional support measures included ₹40,000 crore absorbed for LPG protection in FY 2024–25 and ₹24,500 crore during the initial years of the Russia–Ukraine conflict to keep fuel prices stable.

Future Outlook: Beyond Fuel Prices

To strengthen long-term energy security, the government is balancing immediate consumer relief with structural changes. These efforts include diversifying crude sourcing and expanding investments in renewable energy, electric vehicles (EVs) and green hydrogen to reduce India’s long-term dependence on volatile global oil markets. DeshGujarat