Prime Minister Modi on Thursday (November 12, 2026) said that the central government absorbed a major part of the hike in diesel prices caused by the war in the Middle East. The Prime Minister made the remarks while addressing the plenary session of the India Today Group’s Kisan Tak Bharat Agriculture Conference 2026 at Bharat Mandapam in New Delhi.
PM Modi said that when crude oil prices surged from USD 70 to USD 122 per barrel within a few weeks due to the Middle East war, the government was compelled to increase diesel prices to ₹50 per litre. But to protect farmers from the impact of the price hike, the government increased the diesel price by just ₹7 per litre and absorbed the rest of the increase.
“…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,” PM Modi said. He added that oil prices increased by 40% to 50% in neighbouring countries, but the government did not let that happen in India. As a consequence, the government had to bear a ₹14000 crore monthly expense.
“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…” the PM said.
#WATCH | Delhi: At the Kisan Tak Bharat Agriculture Conference 2026, Prime Minister Narendra Modi says, "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. 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…" (Source: DD News)
— ANI (@ANI) November 12, 2026
Highlighting his government’s efforts to support farmers, PM Modi said that the government spent ₹16 lakh crore over the past 12 years to ensure farmers received fertilisers at affordable prices. Pointing out the stark difference between international market prices and domestic rates of fertilisers, the Prime Minister said that a bag of Di-Ammonium Phosphate (DAP), which was being sold at around ₹5,000 internationally, was being supplied at ₹1300 to Indian farmers. Similarly, a bag of urea, which cost ₹3000 internationally, was being provided to Indian farmers at ₹300.
50 crore Indians, including farmers, lifted out of poverty
PM Modi cited a recent World Bank study that showed that 50 crore people in India have come out of poverty in just 12-13 years, including small farmers.
#WATCH | "बीते दशक में भारत की कृषि विकास दर 4% से अधिक रही है, जो आजादी के बाद किसी भी दशक में पहली बार हुआ है। इसी दौरान गांवों में बड़ी संख्या में छोटे किसानों और खेत मजदूरों ने गरीबी को परास्त किया है। यह इस बात का प्रमाण है कि कृषि की प्रगति देश की समृद्धि और गरीबों के सशक्तिकरण से सीधे जुड़ी है": भारत मंडपम, नई दिल्ली से प्रधानमंत्री @narendramodi @PMOIndia #Agriculture #Farmers #KisanTakBharat
— डीडी न्यूज़ (@DDNewsHindi) November 12, 2026
He said that due to the government’s sustained efforts to boost the agriculture sector, the sector witnessed an unprecedented growth of 4% in the past decade. He further added that this was the first time since independence that the sector experienced such growth.
