History of Petrol & Diesal Price Since 1985 to 2024

Introduction: The history of petrol and diesel prices in India from 1985 to 2024 is a long and complex one. Petrol prices have seen a huge variation in inflation over the past 30 years, with some periods experiencing high inflation and others experiencing zero or lower inflation

The history of petrol and diesel prices is influenced by a complex set of factors, including global oil prices, domestic taxes, subsidies, exchange rates, inflation, and government policies. Here’s an overview of the key trends in petrol and diesel prices from 1985 to 2024, focusing on general trends rather than specific yearly prices due to the variability across different countries.

1985-1990: Stable Prices

• Global Context: The 1980s saw relatively stable oil prices after the shocks of the 1970s, particularly after the 1980-81 price spike caused by the Iranian Revolution and the Iran-Iraq War.
• Impact on Prices: Petrol and diesel prices during this period were relatively stable, with only moderate increases reflecting global oil market conditions.

1990-2000: Gulf War and Market Liberalization

• Global Context: The early 1990s saw a spike in oil prices due to the Gulf War (1990-91), but this was followed by a period of declining prices as oil production stabilized and new sources were developed.
• Impact on Prices: There was a temporary spike in petrol and diesel prices in the early 1990s due to the Gulf War. In many countries, market liberalization began to influence prices, reducing government control and subsidies, which led to prices that more closely followed global oil trends.

2000-2010: Price Volatility and the 2008 Financial Crisis

• Global Context: The early 2000s experienced rising oil prices due to increased global demand, particularly from emerging economies like China and India. The 2008 financial crisis caused a sharp drop in prices, followed by a rapid recovery.
• Impact on Prices: Petrol and diesel prices rose steadily in the early 2000s, reaching a peak around 2008. The financial crisis caused a temporary drop in prices, but they recovered quickly by 2010.

2010-2020: Shale Boom and Price Shocks

• Global Context: The U.S. shale boom led to increased oil production, which contributed to a significant drop in global oil prices around 2014-2016. However, geopolitical tensions and OPEC’s production decisions continued to cause volatility.
• Impact on Prices: Petrol and diesel prices fell sharply around 2014-2016, reflecting the drop in global oil prices. Prices remained relatively low until 2020, with occasional spikes due to geopolitical factors.

2020-2024: Pandemic and Energy Transition

• Global Context: The COVID-19 pandemic caused a significant drop in oil demand, leading to a sharp decline in prices in 2020. However, as economies recovered, demand increased, leading to a rapid rise in prices by 2021-2022. Additionally, the energy transition towards renewables began to impact long-term price expectations.
• Impact on Prices: Petrol and diesel prices fluctuated dramatically during this period. After a significant drop in 2020, prices rebounded sharply in 2021-2022. By 2024, prices were influenced by the ongoing energy transition, with some volatility due to supply chain issues, geopolitical tensions, and changes in global demand patterns.

Conclusion

The price trends for petrol and diesel from 1985 to 2024 have been shaped by a mix of global oil market dynamics, economic events, and domestic policies. In general:

• 1985-2000: Stable with occasional spikes.
• 2000-2010: Increasing prices with significant volatility around 2008.
• 2010-2020: Sharp price drops around 2014-2016, followed by low and stable prices.
• 2020-2024: High volatility due to the pandemic, recovery, and the beginning of the energy transition.

For specific historical price data, it’s best to refer to records from energy ministries, oil companies, or financial databases specific to each country.

FAQs?

Q: What was the price of petrol in 1985?

A: The price of petrol in 1985 was around 7.25 rupees per liter.

Q: What was the highest price of petrol in India?

A: The highest price of petrol in India was recorded in October 2021, when it touched 110.04 rupees per liter in Delhi.

Q: What was the price of diesel in 1999?

A: The price of diesel in 1999 was around 9.94 rupees per liter.

Q: How often do petrol and diesel prices change in India?

A: Petrol and diesel prices in India are revised daily based on international crude oil prices and other market factors.