Prime Minister Narendra Modi explained that the government absorbed most of the diesel price hikes, incurring a significant monthly subsidy. Agricultural fertilisers were also heavily subsidised, with DAP and urea prices kept well below international market rates.
Indian government limited petrol and diesel price hikes amid global oil surge
The Indian government managed to protect domestic consumers and farmers from the impact of rising global commodity prices triggered by international conflicts. Despite a sharp increase in crude oil prices worldwide, petrol prices in India increased by just 7.4 percent and diesel by 8.3 percent.

