Petrol diesel price hike: The Opposition parties on 15 May launched a scathing attack on Prime Minister Narendra Modi-led Union government over fuel price hike announced on 15 May. The opposition accused PM Modi of unleashing ‘the whip’ on the public after the Centre increased petrol and diesel prices by ₹3 across the country.
The Congress party linked the fuel price hike to the completion of the Assembly election in four states and one union territory saying that PM Modi’s ‘vasooli (extortion) begins’ after the elections.
“Inflation Man Modi has once again unleashed the whip on the public today. Petrol and diesel have been increased by 3-3 rupees. Meanwhile, CNG prices have also been raised by 2 rupees. Elections over – Modi’s extortion begins,” Congress said.
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Petrol and diesel prices were increased by ₹3 per litre after state-owned oil firms ended a four-year hiatus in rate revisions. This hike was necessary as OMCs were incurring losses due to unchanged retail prices despite a surge in global crude oil prices.
Petrol and diesel prices had remained unchanged since April 2022, with a one-off reduction in March 2024 just before the Lok Sabha elections. The recent increase marks the first significant revision in over two years.
Opposition parties like Congress and Samajwadi Party attacked the Modi government, accusing them of ‘extortion’ after elections. Akhilesh Yadav suggested using bicycles, and others criticized the hike as ‘looting the public’.
The price increase affects consumers directly and can lead to higher inflation. Economists note that diesel price hikes have a wider economic impact as they increase transportation costs for goods, affecting the prices of essentials.
Yes, CNG prices were also increased. In Delhi, CNG prices went up by ₹2 per kg, and a similar ₹2 hike was implemented in Mumbai.
Petrol and diesel prices were increased by ₹3 per litre on Friday after state-owned oil firms ended a four-year record hiatus in rate revisions. Soon after petrol price, CNG prices hiked by ₹2 in Delhi from today., 15 May.
The fuel price hike comes days after Prime Minister Narendra Modi appealed to citizens to adopt austerity measures to conserve foreign exchange by reducing imports of crude oil and precious metals.
Bicycle the only option: Akhilesh Yadav
Samajwadi Party chief Akhilesh Yadav suggested shifting to bicycle use. “If you want to move forward, the bicycle is the only option,” Yadav wrote on X.
Bicycle is election symbol of Samajwadi Party.
The price hike also comes less than two weeks after state assembly elections in Assam, Kerala, Tamil Nadu, and West Bengal. Polls in Assam and Kerala were held on 9 April, in Tamil Nadu and the first phase of voting in West Bengal on 23 April, and ended in 29 April with the second phase of polling in West Bengal. The results were announced on 4 May.
Trinamool Congress (TMC) MP Kirti Azad also attacked the BJP, saying, “People voted for the BJP and this is what they got in return… petrol and diesel prices have been increased. They are looting the public and doing nothing else.”
Petrol price was hiked to ₹97.77 per litre from ₹94.77 in the national capital. Diesel now costs ₹90.67 as against ₹89.67 per litre previously, according to industry sources.
The increase is a 10th of the desired hike needed to account for the surge in global energy rates since the start of the West Asia conflict.
State-owned oil firms had kept fuel price unchanged for 11 weeks despite a surge in input cost, but passed on part of the increase once operations became financially unsustainable, the sources said.
First hike since April 2022
Prices have remained on freeze since April 2022, but had a one-off reduction of ₹2 a litre each on petrol and diesel in March 2024 just before the Lok Sabha elections.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) had abandoned the daily price revision in April 2022 to insulate domestic consumers from a steep price increase that was warranted because of international oil prices shooting through the roof post Russia’s invasion of Ukraine.
They incurred heavy losses in the first half of the 2022-23 fiscal year, which they recouped when rates fell in subsequent months.
But the war in West Asia has again sent international oil prices soaring by over 50 per cent.
The basket of crude oil that India imports averaged USD 69 per barrel in February before the war in West Asia broke out. It averaged USD 113-114 per barrel in subsequent months.
Opposition predicted fuel price hike
Earlier this week, opposition parties had hit out at PM Modi for urging citizens to reduce fuel and edible oil consumption claiming that fuel prices were set to be hiked now that assembly polls are over.
In a social media post, Congress leader Rahul Gandhi had said that the appeal had exposed PM Modi’s limits. Aam Aadmi Party leader Sanjay Singh had alleged that common people were being asked to bear the burden in the name of patriotism.
“Gas has become expensive, now petrol and diesel will get costlier,” Singh had said in a post on X on 11 May
Key Takeaways
- The recent fuel price hike follows a four-year hiatus and comes shortly after state assembly elections.
- Opposition parties, particularly Congress, have criticized the timing of the price increase as a form of exploitation.
- International oil prices have surged significantly due to geopolitical conflicts, impacting domestic fuel pricing.
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