Inflation in fuel and power, gauged by the wholesale price index (WPI), has contracted for 10 straight quarters through July-September, 2025 as oil marketing companies have not increased the prices of petrol and diesel since March 15, 2024. For instance, between May 21, 2022 and March 14, 2024, retail price of petrol in Delhi remained unchanged at 96.72 a litre and diesel at Rs 89.62 a litre.
From March 15, 2024, prices of petrol fell to Rs 94.77 a litre and diesel to Rs 87.67 a litre. This and the prices of non-subsidised LPG and aviation turbine fuel moving with crude oil prices, resulted in year-on-year fall in the fuel and power sub index in WPI over ten quarters.
The fuel and light sub-index in the consumer price index too fell for six quarters in a row through January-March, 2025 period, before starting to rise again. The Indian basket of crude dropped from $93.15 a barrel in FY23 to $82.58 a barrel in FY24, to $78.56 in FY25 and is down to $64.98 a barrel in October this year.