India has deregulated petrol and diesel prices in name, but not fully in practice. The system still operates in the grey zone between market pricing and government control. As global crude oil prices rise and the rupee weakens, this hybrid system is coming under stress. The result is opacity, windfall gains during good times, and sudden losses during bad times. India needs a clear, rule-based framework to determine pump prices. Before 2010, India followed the Administered Pricing Mechanism, under which the government fixed fuel prices. These prices had little connection with global crude oil markets. State-owned firms such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum sold fuel at controlled prices, often below cost. The government later compensated them through subsidies, upstream support, and oil bonds. While this system protected consumers, it distorted price signals and burdened public finances. Reforms began on June 25, 2010, following the Kirit Parikh Committee’s recommendations.…