Modi says government absorbed ₹43 of ₹50 diesel price hike
What's the story
Prime Minister Narendra Modi on Thursday announced that his government absorbed ₹43 of a potential ₹50 hike in diesel prices. The decision was taken to protect farmers and consumers from the impact of rising global crude oil prices amid the West Asia conflict. Speaking at the Kisan Tak Bharat Agriculture Conference 2026 in New Delhi, PM Modi said international crude oil prices had skyrocketed from $70 to $122 per barrel during this period.
Price hike
Diesel prices increased by ₹7 per liter
PM Modi said, "India was also facing a major challenge. The country was compelled to increase diesel prices by at least ₹50 per liter."
"However, the government decided that the entire burden of international market shocks would not be passed on to the country's citizens and farmers," he added.
Instead, only a ₹7 per liter increase was implemented while absorbing the remaining ₹43 per liter.
Financial impact
Government absorbing financial burden of ₹14,000 crore every month
PM Modi also revealed that the government has been bearing a financial burden of ₹14,000 crore every month to shield consumers and farmers from higher fuel prices.
He said that while diesel prices in neighboring countries had increased by 40-50%, India limited the increase.
The Prime Minister highlighted that over the past 12 years, ₹16 lakh crore was spent by his government to ensure affordable fertilizer supplies for farmers.
Agricultural progress
Agricultural growth in past decade
PM Modi also highlighted that India has witnessed over 4% agricultural growth in the past decade, the first such instance since Independence.
He said this growth has helped lift many small farmers out of poverty.
"Building a 'Viksit Bharat' is simply not possible without developing agriculture, making farming smarter, and empowering our farmers," he said.
Cost control
Commitment to protect farmers from rising input costs
The Prime Minister said these measures are a testament to the government's commitment to protecting farmers from rising input costs and global market uncertainties.
He stressed that affordable fuel and fertilizers are key to sustaining agricultural growth, supporting farm incomes, and ensuring international price fluctuations don't burden farmers and consumers financially.