Fuel Price Hike: Congress Slams Modi Govt Over Petrol, Diesel Costs
Congress criticizes the Centre after a second fuel price hike in a week.
Top Summary
- What happened: Petrol and diesel prices increased by around 90 paise per litre for the second time in a week.
- Why it matters: This ends a nearly four-year price freeze by state-run oil companies and adds to inflationary pressures.
- What changes for people: Higher fuel costs directly impact consumers and potentially increase transportation expenses.
- Who is affected: All Indian consumers, particularly those reliant on petrol and diesel vehicles.
Congress Attacks Centre Over Fuel Price Hike
The Congress party has strongly criticized the central government following another increase in petrol and diesel prices. The party dubbed Prime Minister Modi the "Inflation Man."
Congress claims prices have increased by ₹4 in the last 4 days. The party shared its criticism on X, formerly known as Twitter.
Fuel Prices Rise Across Major Cities
The latest hike brings petrol prices in Delhi to ₹98.64 per litre and diesel to ₹91.58 per litre. Prices vary across states due to differing VAT rates.
In Mumbai, petrol costs ₹107.59 per litre and diesel ₹94.08. Kolkata sees petrol at ₹109.70 and diesel at ₹96.07 per litre. Chennai prices are ₹104.49 for petrol and ₹96.11 for diesel.
CNG Prices Also Increasing
Compressed Natural Gas (CNG) prices have also been hiked this month. CNG prices rose by ₹2 per kg on May 15 in Delhi and Mumbai.
Another increase of ₹1 per kg followed on Sunday.
Global Factors Influencing Fuel Prices
Global crude oil prices have surged, partly due to US-Israeli strikes on Iran and retaliatory disruptions. The Strait of Hormuz disruption has significantly impacted oil transit routes.
Retail fuel rates in India had remained frozen for months despite rising crude prices. The government stated that this freeze was to shield consumers from global energy shocks.
Government Response to Energy Disruptions
Union Minister Hardeep Singh Puri stated that India successfully averted crude oil, LPG and pipeline natural gas shortages. This was despite two major global conflicts disrupting international energy markets.
Puri highlighted the war in West Asia and the Russia-Ukraine war as significant disruptors.
Opposition Alleges Election-Related Price Freeze
Opposition parties allege that the fuel price freeze was deliberate until after key state elections concluded. Tuesday’s revision pushes petrol and diesel prices to their highest levels since May 2022.
Fuel prices had largely remained unchanged since April 2022, except for a ₹2 per litre reduction in March 2024 before the Lok Sabha elections.
What to Watch Next
Monitor upcoming government statements regarding fuel pricing policies and potential interventions. Also, keep an eye on global crude oil prices and their continued impact on domestic fuel rates. Future political reactions to these price hikes will be important as well.