PM Modi says govt absorbing ₹14,000 crore monthly diesel burden, limited ₹50/litre hike to just ₹7

Prime Minister Narendra Modi on Thursday said the government is bearing an additional burden of Rs 14,000 crore every month to protect consumers from a steep increase in diesel prices triggered by the ongoing West Asia crisis.

Highlighting the impact of the Iran-US conflict on global energy markets at India Today's Kisan Conference 2026, Modi said diesel prices would have needed to rise by as much as Rs 50 per litre if the entire increase in costs had been passed on to consumers.

However, the government absorbed most of the burden, restricting the increase to just Rs 7 per litre, he said.

Government shields consumers from fuel price shock

Modi said the decision was aimed at protecting households, farmers, transport operators and businesses from the financial impact of rising international fuel costs.

Diesel remains critical to India's economy, powering commercial transportation, agricultural machinery and several industrial activities. A sharp increase in diesel prices can raise freight charges and production costs, potentially pushing up food prices and inflation.

The government's decision to absorb the additional burden comes amid volatility in global energy markets following the West Asia conflict.

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Petrol, diesel prices remain unchanged

Meanwhile, petrol and diesel prices remained unchanged across major Indian cities on November 12.

In New Delhi, petrol was priced at Rs 102.12 per litre, while diesel stood at Rs 95.20 per litre.

Mumbai recorded petrol at Rs 111.21 and diesel at Rs 97.83 per litre. In Kolkata, petrol cost Rs 113.51 and diesel Rs 99.82 per litre.

Chennai reported petrol at Rs 107.76 and diesel at Rs 99.55 per litre.

Among the cities covered, Hyderabad recorded the highest petrol price at Rs 116.15 per litre, while Thiruvananthapuram had the costliest diesel at Rs 104.40 per litre.

Although retail fuel prices remained stable, the government's reported monthly burden highlights the pressure that elevated international energy costs continue to place on India's fuel pricing framework.

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