PM Modi Says Centre Absorbed ₹43 Diesel Price Hike
Prime Minister Narendra Modi has said the Union Government absorbed ₹43 per litre of a potential ₹50 diesel price increase to protect farmers and consumers from rising global crude oil prices. Speaking at an agriculture conference in New Delhi on Thursday, November 12, Modi said diesel prices were increased by only ₹7 per litre despite mounting pressure from the West Asia conflict.
Modi Says Government Bears ₹14,000 Crore Monthly Burden
Addressing the Kisan Tak Bharat Agriculture Conference 2026 at Bharat Mandapam, Modi said international crude oil prices had surged from $70 to $122 per barrel within weeks.
He maintained that the government decided against passing the entire increase in fuel costs to consumers, particularly farmers dependent on diesel for agricultural operations.
According to Modi, the decision has imposed a monthly financial burden of approximately ₹14,000 crore.
He also claimed that diesel prices in neighbouring countries had increased by 40% to 50% during the same period.
Centre Highlights ₹16 Lakh Crore Fertiliser Subsidy
Modi said the government had spent ₹16 lakh crore over the past 12 years to ensure affordable fertiliser supplies for Indian farmers.
He explained that a 50 kg bag of Di-Ammonium Phosphate (DAP), costing approximately ₹5,000 internationally, was being supplied to farmers for ₹1,300.
Similarly, urea costing around ₹3,000 per bag in international markets was being made available for less than ₹300.
Government Prioritises Affordable Agricultural Inputs
The Prime Minister emphasised that controlling agricultural input costs remained essential for protecting farm incomes and sustaining agricultural growth.
He said the government’s fuel pricing and fertiliser subsidy decisions were intended to shield farmers from international market volatility.
The ₹43 per litre absorption and ₹14,000 crore monthly burden were figures presented by Modi during his address.
