Chennai (Tamil Nadu) [India], May 15 : Tamil Nadu Chief Minister Vijay on Friday criticised the recent increase in petroleum product prices by Union Government public sector oil companies, calling it "unacceptable" and urging an immediate rollback.
Earlier, the Centre hiked prices of petrol and diesel by Rs 3 per litre as the Brent crude price hovers above USD 100 per barrel amid the West Asia crisis.
Reacting to the hike, the CM said, "The Union Government Public Sector Oil Companies have increased the prices of petroleum products, especially petrol by Rs. 3 and diesel by Rs. 3 per litre. This is unacceptable. When the price of crude oil decreases in the international market, the petrol companies do not reduce the prices of petrol and diesel accordingly. Instead, those companies only take the profit."
Calling the timing of the hike inappropriate, he added, "This increase in the prices of petroleum products after the assembly elections in five states is unacceptable. This price increase will have a huge impact on the monthly income of the poor and middle-class people who use two-wheelers and scooters."
Vijay further noted financial strain on transport workers, stating, "Those who take bank loans and operate vehicles for rent will be subjected to additional financial burden, and their economy will also be affected. Due to the increase in the price of petroleum products, there is a possibility of increasing the rent of rental vehicles. This will lead to an increase in the price of daily necessities and will also affect the purchasing power of the poor and simple people."
On the impact on businesses, he said, "Since the cost of production of the products produced by micro, small and medium enterprises increases due to the increase in the price of petroleum products, there is a possibility of a slowdown in the market and exports."
Concluding his statement, Vijay urged the Centre, saying, "Therefore, I request the Union Government to immediately roll back the increase in the price of petroleum products, which is affecting the poor and simple middle-class people and micro, small and medium enterprises."
Following the Rs 3 hike, petrol prices in New Delhi rose from Rs 94.77 to Rs 97.77 per litre, while diesel prices increased from Rs 87.67 to Rs 90.67 per litre.
The fuel price revision comes amid growing concerns over global energy supplies due to tensions in West Asia and disruptions in the Strait of Hormuz, a key maritime trade route for crude oil transportation.
Brent crude oil prices have remained above USD 100 per barrel following the ongoing conflict involving the US, Israel and Iran since February this year. The widening regional conflict has impacted fuel markets as several West Asian countries are major energy suppliers.