New Delhi: After holding prices for nearly 76 days since the West Asian conflict began disrupting global supply chains, state-controlled oil companies on Friday hiked fuel prices by `3 per litre across the country.
Compressed Natural Gas (CNG) prices were also increased by Rs 2 per kg in major cities such as Delhi and Mumbai.
However, prices of piped natural gas (PNG) used in households and domestic LPG cylinders remained unchanged.
Following the hike, petrol in Hyderabad now costs Rs 110.89, up from Rs 107, while diesel costs Rs 98.89, up from `95.70.
In Delhi it now costs Rs 97.77 per litre, up from Rs 94.77, while diesel costs Rs 90.67 per litre, against the earlier Rs 87.67. In Mumbai, petrol costs Rs 106.68 per litre and diesel Rs 93.14. In Kolkata, petrol is priced at Rs 108.74 and diesel at Rs 95.13, while in Chennai, petrol costs Rs 103.67 and diesel Rs 95.25 per litre. CNG now costs Rs 79.09 per kg in Delhi and Rs 84 per kg in Mumbai.
The Opposition accused the BJP-led NDA government of playing politics with people’s lives by increasing fuel prices after Assembly polls in four states and a Union Territory had concluded.
While state-controlled oil companies had kept prices unchanged, private fuel retailers had already raised pump prices in March. Nayara Energy, the country’s largest private fuel retailer, raised petrol prices by ?5 per litre and diesel by ?3 per litre in March. Shell increased petrol prices by ?7.41 per litre and diesel by ?25 per litre from April 1. In Bengaluru, Shell sells petrol at ?119.85 per litre and diesel at ?123.52 per litre. Domestic LPG prices were also increased by ?60 per cylinder in March.
Fuel prices in India were last hiked in April 2022. In 2024, just before the Lok Sabha elections, prices were reduced by ?2 per litre. Friday’s increase is the first hike in four years by state-run fuel retailers, who passed on part of the burden caused by surging global crude prices triggered by the Iran conflict.
The US-led attack on Iran began on February 28, putting pressure on global fuel supplies after Iran shut down the Strait of Hormuz in retaliation, disrupting supply chains. Global crude oil prices have surged by more than 50 per cent since then.
Despite the rise in crude prices, retail fuel rates were kept frozen as part of what the government described as an effort to shield price-sensitive consumers from higher global energy costs. However, Opposition parties alleged political motives behind the move, as key states were going to polls.
Industry sources said the price hike was modest compared with the rise in crude prices and still leaves retailers absorbing losses estimated at ?11 per litre on petrol and ?39 per litre on diesel. They said the hike appeared calibrated to partially ease margin pressure on oil companies without creating a major inflationary shock. However, the increase is expected to have some impact on inflation.
Friday’s hike follows excise duty cuts announced in March and comes as the government rolls out measures to curb fuel consumption and contain the country’s oil import bill. Prime Minister Narendra Modi this week urged fuel conservation, work-from-home practices and reduced travel as higher energy prices strain India’s foreign exchange reserves and threaten to widen the current account deficit for a third consecutive year.
Opposition parties criticised the hike, saying the rise in fuel prices was pushing common people into crisis and disturbing household budgets across the country. Leader of the Opposition Rahul Gandhi said people were paying for the government’s mistakes and predicted further hikes in fuel prices in the coming days.
Former Rajasthan Chief Minister Ashok Gehlot alleged that the BJP-led government was anti-poor and had failed to pass on the benefits of lower global crude oil prices to the public. He said Rahul Gandhi had predicted before the West Bengal elections that fuel prices would be increased after polling concluded.
“Rahul Gandhi had already said before the Bengal elections that prices would go up once elections were over. Prices have now increased,” Gehlot said.
The Trinamool Congress also attacked the Narendra Modi-led government over the increase in petrol and diesel prices, accusing the Centre of “cheating” citizens after the elections and worsening the economic situation. TMC Rajya Sabha Deputy Leader Sagarika Ghose alleged that the government concealed the severity of the energy and economic situation during the election campaign and imposed the burden on ordinary citizens only after the polls.
In a statement, the Polit Bureau of the Communist Party of India (Marxist) said the hike would impose a further burden on working people already reeling under inflation, unemployment, stagnant wages and deepening economic distress.
Congress social media and digital platforms head Supriya Shrinate said, “While the Modi government has unleashed higher prices in India, various countries have taken decisive steps to bring relief to their people.” She cited Nepal, Australia, Germany and Britain among countries that had reduced fuel prices for the benefit of their citizens.
The BJP defended the hike, claiming that India had shielded citizens from the global oil shock for more than two months and implemented only a “limited and calibrated” increase, even as several countries witnessed a steep rise in fuel prices.
In a post on X, BJP IT cell head Amit Malviya said India recorded one of the lowest increases among major economies, with petrol prices rising by 3.2 per cent and diesel by 3.4 per cent.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: deccanchronicle.com
