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What can we understand based on the Historical Petrol and Diesel Fuel Prices In India from 1989 to 2024? How are these commodities impacting our financial life?
According to the latest report from the oil ministry, currently, India’s crude oil imports stand at 87.7% of its oil requirements from supply from other countries. India is facing a significant challenge as it grapples with its increasing reliance on imported crude oil. This issue has been exacerbated by the rising oil prices, which are a result of geopolitical tensions in the Middle East and the controlled supply from the Organization of Petroleum Exporting Countries and its allies (OPEC).
Consequently, fluctuations in the global market and the depreciation of the rupee significantly influence the prices of petrol and diesel. The prices of petrol and diesel have a direct or indirect impact on the majority of the items and services we use in our daily lives. Therefore, any fluctuations in these prices will inevitably affect us.
Historical Petrol and Diesel Prices In India – What we can learn?
Let us now try to find the historical petrol prices in India from 1989 to 2024. You noticed that in 1989 the price was Rs.8.5 in Delhi and now in 2024, it reached to 94.72. The price increased at the rate of around 7.1% during these 35 years.
Look into the below Google Sheet for the prices of petrol in all four metros of India from 1989 to 2024
If we try to plot the same in a chart, it looks like below.
Let us now try to find the historical diesel prices in India from 1989 to 2024. You noticed that in 1989 the price was Rs.3.5 in Delhi and now in 2024, it has reached to 87.62. The price increased at the rate of around 9.6% during these 35 years.
Look into the below Google Sheet for the prices of diesel in all four metros of India from 1989 to 2024
If we try to plot the same in a chart, it looks like below.
It is evident from historical petrol and diesel prices in India that both commodities increased at around 6% to 9% during these 35 years period. As many of our goods and services are heavily dependent on petrol and diesel prices, you may easily assume around 7% to 10% inflation to our considerations.
There are two options available to combat inflation. The first option involves taking a calculated risk by incorporating equity into your asset portfolio to outpace inflation. Alternatively, if you are averse to risk, the only alternative is to increase your investments to ensure that inflation does not hinder your financial objectives.
Source –
For 2017 to 2024 Data – Petroleum and Planning Analysis Cell (Ministry Of Petroleum and Natural Gas, Government Of India)
For 1989 to 2017 Data – Reuters
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