New Delhi [India], May 25 : The Opposition parties lambasted the Centre after it once again hiked the petrol and diesel prices on Monday, marking the fourth increase in less than two weeks amid continued volatility in global crude markets due to the West Asia conflict.
The recent hike in petrol rates has taken the total rise within two weeks to Rs 7.5 per litre. Petrol prices in Delhi crossed the Rs 100-mark. The price was hiked by Rs 2.61, taking it to Rs 102.12 per litre, while diesel prices increased by Rs 2.71 to Rs 95.20 per litre. Similar hikes were witnessed across major metropolitan cities, including Kolkata, Mumbai and Chennai, inviting criticism from consumers and transport operators.
In Kolkata, petrol prices increased by Rs 2.87 to Rs 113.51 per litre, while diesel rose by Rs 2.80 to Rs 99.82 per litre. In Mumbai, petrol became costlier by Rs 2.72 and is now priced at Rs 111.21 per litre, whereas diesel climbed by Rs 2.81 to Rs 97.83 per litre. In Chennai, petrol prices rose by Rs 2.46 to Rs 107.77 per litre, and diesel increased by Rs 2.57 to Rs 99.55 per litre.
Congress workers staged protests in Shimla, Bengaluru and Ahmedabad. In Gujarat, police detained National Students' Union of India (NSUI) workers who were protesting in Ahmedabad against the price hike.
However, the Centre maintained that it has forgone nearly Rs 14,000 crore in tax revenue after reducing excise duty on petrol and diesel to shield consumers from rising fuel prices, according to Sujata Sharma, Joint Secretary in the Petroleum Ministry. The government had cut central excise duty by Rs 10 per litre on both petrol and diesel on March 27, following a sharp rise in global crude oil prices due to tensions in West Asia.
Union Finance Minister Nirmala Sitharaman clarified that price hikes are purely operational and driven by global procurement realities rather than sudden government policy changes. She revealed that the central government had previously absorbed massive shocks, resulting in a Rs 1 lakh crore fiscal hit from reducing central taxes, to insulate consumers for over two and a half months.
"On one hand, for about 80 days, 75-76 days, we ensured that the burden on the people did not increase. Even at that time, a 10-rupee increase would have happened that we absorbed, and that is almost a Rs 1 lakh crore hit on the functional budget. But the increases now are coming from the oil marketing companies because they are the ones who are procuring, setting," Sitharaman detailed.
Leader of Opposition in Karnataka Assembly, R Ashoka, questioned the high Value-Added Tax (VAT) in the state, significantly impacting the fuel prices. R Ashoka underlined that the petrol price in Delhi is Rs 99.50. In Gujarat, it is Rs 99.10. The revised price of petrol stands at Rs 99.75 in Haryana, but in Karnataka it is 107.70 due to the VAT.
BJP MP Damodar Agarwal invoked Prime Minister Narendra Modi's appeal to reduce the consumption of petrol and diesel. He said, "The public is observing both what Rahul Gandhi says and what his Congress party has actually accomplished over the past years. For the last 3-4 months, crude oil supplies have been disrupted due to the conflict in the Gulf region, and the entire world is grappling with an energy crisis; consequently, the Prime Minister has urged us to minimise our consumption of diesel and petrol so that our foreign exchange reserves remain intact...If we look at the global scenario, specifically the situation in countries like the US and Pakistan, we are making every effort here in India to ensure that the common citizen does not face undue hardship."
Meanwhile, the Opposition parties launched a scathing attack against the Prime Minister over inflation and fuel prices, holding the Centre responsible for the recent hikes in petrol, diesel and LPG rates.
Congress President Mallikarjun Kharge said, "At this moment, I will simply say that Modi Ji is responsible for the hike in the prices of petrol, diesel, and gas."
Congress General Secretary (Organisation) KC Venugopal accused the administration of "completely sitting idle" while the common public grappled with skyrocketing prices and an unemployment crisis.
Addressing reporters, Venugopal said, "The government is not doing anything to address the issue. They are completely sitting [idle], and the Prime Minister is touring all over the world. Every day, petrol and diesel prices are increasing; people are in very, very big difficulties. Unemployment is at a high, and our youth are not getting any jobs."
Former Chhattisgarh Chief Minister and Congress leader Bhupesh Baghel also added to the criticism, saying, "It has been only 12 days since the elections ended, and the price of petrol-diesel has increased by Rs 8. Rahul Gandhi had said this earlier, but at that time, the entire cabinet had said that the opposition was spreading confusion. Now, why are those people silent? Diesel is not available anywhere now. In such a situation, transportation will be affected, and because of that, retail prices will rise. This is a matter of concern for the common people."
The move to hike fuel prices was criticised across the ranks of the Opposition. Aam Aadmi Party (AAP) national convenor Arvind Kejriwal on Monday questioned Prime Minister Narendra Modi why he is not importing crude oil and gas from Russia and Iran, which will be much cheaper.
However, OMC sources told ANI that there has been no reduction in crude oil supplies coming from Russia, and there is no shortage of petrol, diesel or LPG in the country.
Meanwhile, NCP(SCP) MLA Rohit Pawar said that if a protest is required, he and his party would extend full support and actively participate, calling the current situation extremely precarious and dangerous.
Speaking to reporters, Pawar said, "If we have to stage a protest and indeed, a protest will be necessary, we, too, will participate in it and lend our full support. The current situation is extremely precarious and dangerous."
The NCP(SCP) leader pointed out the sharp contrast between oil marketing companies' profits and the burden on consumers.
"On one hand, the monthly and quarterly reports submitted to the stock market by companies like BPCL, IOCL, and HPCL reveal profits running into thousands of crores. Over the last ten years, these companies have collectively earned a profit of Rs 4.5 lakh crore," Pawar told reporters.
He added, "During the tenure of Manmohan Singh, the price of crude oil stood at USD 110 per barrel. At that time, the retail prices of petrol and diesel in India hovered around Rs 60. However, when PM Modi's government came to power, the price of crude oil dropped from USD 110 to USD 40 per barrel; yet, the retail price of petrol surged from Rs 60 to Rs 90. And now, it has even crossed the Rs 100 mark."
The fuel prices are on the rise owing to the blockade of the Strait of Hormuz amid the ongoing conflict between the US and Iran. Amid uncertainties, Iran on Monday said that an agreement aimed at a complete solution to the hostilities in West Asia with the United States is 'not imminent' despite progress made on several key issues between the two sides.