Govt bore Rs 43 of Rs 50 per litre diesel price hike during West Asia crisis; PM Modi reveals cost

Prime Minister Narendra Modi said the government took on most of the diesel price burden after crude oil prices rose sharply due to the conflict in West Asia. He said oil prices jumped from $70 to $122 per barrel within a few weeks, creating a major challenge for India.

Speaking at the Kisan Tak Bharat Agriculture Conference 2026 in Delhi, Modi said diesel prices would have needed to rise by at least ₹50 per litre. However, the government increased the price by only ₹7 per litre and absorbed the remaining ₹43.

"When the threat of war loomed over West Asia, the price of crude oil surged from $70 to $122 per barrel in just a few weeks. India faced a major challenge at that time. It became necessary to increase the price of diesel by at least Rs 50 per litre. Faced with this situation, the government made a decision in the best interest of our farmers. Instead of the required 50-rupee hike, the government increased the price of diesel by only 7 rupees per litre, choosing to shoulder the remaining burden of 43 rupees per litre itself," Modi said.

The prime minister said diesel prices had risen by 40 to 50 per cent in several neighbouring countries, but India had avoided a similar increase.

"In many of our neighbouring countries, diesel prices rose by 40% to 50%, but that did not happen in India. Ever since then, the government has been absorbing a loss of Rs 14,000 crore every single month," he added.

The Prime Minister also spoke about the government's efforts to protect farm animals from diseases. He said free vaccines against Foot and Mouth Disease (FMD) had been given to the livestock of more than eight crore farmers.

"We are also prioritising the protection of livestock from diseases. To safeguard animals against Foot and Mouth Disease, free vaccinations have been administered to the livestock of over eight crore farmers. Everyone is aware that we provided free vaccines during the COVID-19 pandemic, but this is Modi--he ensures that animals, too, receive free vaccinations," he said.

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Solar energy helping farmers cut costs

Modi said solar energy was helping farmers become energy producers in addition to growing food.

He said around 1.2 million solar pumps had been provided under the PM-KUSUM scheme, helping farmers reduce their electricity bills. Farmers could also earn extra income by setting up solar plants on their farmland.

He urged agricultural scientists, engineers, startups and young innovators to develop solar-powered farming equipment to lower costs and make farm work easier.

"Our agricultural scientists, engineers, and youth are collaborating to develop tools and machinery that are effectively reducing the costs of farming," he said.