PM Modi says West Asia conflict pushed crude oil prices to USD 122 per barrel; govt absorbed diesel price burden to protect farmers

"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," PM Modi said.

Prime Minister Narendra Modi on Thursday said the conflict in West Asia had triggered a sharp rise in crude oil prices, which surged from USD 70 to USD 122 per barrel within a few weeks, posing a major challenge for India, but asserted that the government absorbed a substantial portion of the resulting diesel price burden to protect farmers. Addressing the Kisan Tak Bharat Agriculture Conference 2026 in Delhi, the Prime Minister said the situation warranted a diesel price increase of at least Rs 50 per litre, but the government raised the price by only Rs 7 per litre and absorbed the remaining burden of Rs 43 per litre.

"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," PM Modi said. He further said that while diesel prices had increased by 40 to 50 per cent in several neighbouring countries, India did not allow a similar rise.

"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. Highlighting the government's efforts to support farmers, PM Modi said free vaccinations had been administered to the livestock of more than eight crore farmers to protect animals against Foot and Mouth Disease (FMD).

"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. The Prime Minister also highlighted the role of solar energy in transforming farmers from food providers into energy providers, citing the PM-KUSUM scheme.

He said around 1.2 million solar pumps had been provided under the scheme, helping farmers reduce their electricity bills. He added that farmers were also earning additional income by setting up solar plants on their agricultural land. PM Modi further called upon agricultural scientists, engineers, startups and young innovators to develop solar-powered agricultural equipment to reduce farming costs and make agricultural operations more efficient.

"Our agricultural scientists, engineers, and youth are collaborating to develop tools and machinery that are effectively reducing the costs of farming," he said. The Prime Minister said some machines were being developed to make sowing and harvesting easier and urged experts to work directly with farmers to develop solar-powered equipment.

"Just as the world is moving towards electric vehicles, I envision all types of agricultural tools and equipment being powered by solar energy. I am working towards this vision in collaboration with farmers. I will certainly call upon engineers to work on this. It could become the foundation of a major revolution," he said. He also urged startup founders to ensure that the agricultural equipment they develop is powered by solar energy, reiterating the government's vision of taking solar power to every farm. (ANI)