India's Fuel Pricing Mechanism
India moved from a cost-plus, subsidy-driven Administered Price Mechanism (APM) to market-linked pricing in stages. Petrol pricing was deregulated in June 2010 and diesel pricing was deregulated in October 2014, after which state-run oil marketing companies (Indian Oil, BPCL, HPCL) were permitted to revise retail prices based on international crude benchmarks and the rupee-dollar exchange rate; since June 2017, revisions have occurred daily rather than fortnightly.
- The APM operated from 1975 until it was formally dismantled in 2002, with an interim Trade Parity Pricing mechanism used from 2006.
- Since deregulation, retail petrol and diesel prices are, in principle, market-determined, though the government retains indirect leverage through excise duty adjustments.
- Cheaper Russian crude (available at a discount since 2022) has been a key input keeping retail fuel prices stable despite global price volatility.
● Tracked since February 14, 2026 · last seen September 18, 2026 · updates as the daily brief publishes
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