If the government were to increase petrol and diesel prices by 10 rupees, can every indian be given free health coverage?
by Dr Devan
To estimate the extra revenue per day generated by a ₹10 increase in petrol and diesel prices in India, we need to know the daily consumption of these fuels in the country.
Step 1: Average daily fuel consumption in India
Based on public data (as of recent years):
Petrol consumption: ~3,000 crore litres per year
Diesel consumption: ~8,000 crore litres per year
That gives us:
Daily petrol consumption = 3,000 crore ÷ 365 ≈ 8.2 crore litres/day
Daily diesel consumption = 8,000 crore ÷ 365 ≈ 21.9 crore litres/day
Step 2: Total daily consumption
Total daily consumption of both fuels combined =
8.2 + 21.9 = 30.1 crore litres/day
Step 3: Extra revenue per litre
If the government increases the price by ₹10 per litre (assuming the full increase is government revenue and not dealer profit or tax pass-through), then:
Extra revenue per litre = ₹10
Step 4: Total extra revenue per day
30.1 \text{ crore litres/day} \times ₹10/\text{litre} = ₹301 crore/day
✅ Final Answer:
An increase of ₹10 per litre in petrol and diesel prices would generate approximately ₹301 crore extra revenue per day for the government.
With this extra revenue can every indian be given free health coverage?
Great question. Let’s explore whether the ₹301 crore/day (₹1.1 lakh crore/year) from a ₹10 hike in petrol and diesel prices is enough to fund free health coverage for every Indian.
In Step 1: India’s Population (2025 estimate)
India’s population ≈ 1.43 billion (143 crore)
Step 2: Annual extra revenue from fuel price hike
From earlier:
₹301 crore/day × 365 days = ₹1,09,865 crore/year ≈ ₹1.1 lakh crore/year
Step 3: Cost of providing basic health coverage
Let’s estimate a basic universal health insurance coverage similar to what the Indian government already offers:
Ayushman Bharat offers ₹5 lakh coverage per family per year.
Budget for Ayushman Bharat (2023–24): ~₹6,800 crore, covering around 50 crore beneficiaries (approx. 10 crore families).
That gives us a cost per person:
₹6,800 \text{ crore} ÷ 50 \text{ crore people} = ₹136/person/year
To cover all 143 crore Indians:
₹136 × 143 \text{ crore} ≈ ₹19,448 crore/year
So, even doubling this to provide better, more comprehensive care, it would cost around:
~₹40,000 crore/year
✅ Conclusion:
Extra revenue from ₹10/litre hike = ₹1.1 lakh crore/year
Estimated cost for universal health coverage = ₹40,000 crore/year (generous estimate)
✅ Final Answer:
Yes, the extra revenue from a ₹10 hike in petrol and diesel prices is more than enough to fund free basic health coverage for every Indian, and still leave surplus funds for health infrastructure, medical education, or other public services.
