New Delhi: The Centre Friday raised retail prices of petrol and diesel by Rs 3.04 per litre each and increased compressed natural gas (CNG) prices by Rs 2 per kg.
The move is expected to add to inflationary pressures and increase transportation and household costs, even as the government seeks to ease the mounting fiscal strain on state-run oil marketing companies (OMCs).
Following the hike, petrol prices in Delhi increased from Rs 94.77 per litre to Rs 97.81, while diesel prices rose from Rs 87.67 to Rs 90.71 per litre. CNG prices also witnessed an upward revision across several cities.
The hike comes at a time when India has largely shielded consumers from the sharp rise in global fuel prices triggered by West Asia conflict resulting in supply disruptions across several parts of the world.
The public sector OMCs have been absorbing substantial losses by continuing to sell petrol, diesel, LPG and other fuels below international market-linked prices.
Earlier, Petroleum Minister Hardeep Singh Puri said on social media platform X that OMCs were incurring losses of up to Rs 1,000 crore per day due to elevated import costs of crude oil, natural gas and LPG, while retail fuel prices were kept lower to shield consumers. The government maintained that despite the financial strain, uninterrupted fuel imports and supplies continued across the country.
India is among the few major economies that has not fully passed on the rise in international energy prices to consumers, the government said, adding that more than 60 million consumers visit fuel retail stations every day.
The Centre highlighted that it had earlier cut excise duties on petrol and diesel, resulting in a revenue loss of around Rs 14,000 crore in a month. However, officials said OMC under-recoveries are still expected to rise sharply during the current quarter.
Government estimates suggest that OMC under-recoveries could surge to nearly Rs 2 lakh crore this quarter, while overall losses may touch Rs 1 lakh crore despite the latest price increase.
Reacting sharply to the energy price hike, the Congress party accused the Centre of burdening citizens immediately after elections. “‘Inflation Man’ Modi has once again unleashed the whip on the public today. Petrol and diesel have been increased by 3-3 rupees, while CNG prices have also been raised by 2 rupees. Elections over—Modi’s recovery begins,” the opposition party said in a post on X.
TMC MP Kirti Azad slammed Prime Minister Narendra Modi and Union Home Minister Amit Shah for repeatedly claiming that there were sufficient fuel reserves.
“It’s a straight question to Modi government… in the last 10-12 years, when crude oil prices were low and there was no war taking place, excise duty was increased 16 times. Petrol and diesel prices went from around Rs 65 to over Rs 100. At that time, when there was an opportunity to give relief to the people, no benefit was provided. So now, when prices are rising, why are you putting such a huge burden on the public? Why are you hitting people where it hurts the most?” he told PTI.
“I want to ask the common people, especially the people of Bengal…what did they gain after supporting the BJP? Diesel and petrol prices have now been increased by Rs 3. Amit Shah and Narendra Modi repeatedly claimed that there were sufficient fuel reserves, that there would be no shortage, and that prices would not rise. This clearly shows their double standards in politics. They are simply looting the people and doing nothing else,” he added.
(Edited by Tony Rai)
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