Fuel Price Inflation Amid Slump in Global Crude Rates Congress president Mallikarjun Kharge slammed the Union government…
Fuel Price Inflation Amid Slump in Global Crude Rates Congress president Mallikarjun Kharge slammed the Union government over sustained high domestic fuel costs despite plunging global crude oil values. Kharge accused the ruling dispensation of financial exploitation, questioning why consumers pay inflated prices for petrol, diesel, and liquefied petroleum gas while international market pressures have eased. politics politics
Congress president Mallikarjun Kharge criticized the Union government on Saturday for keeping domestic fuel prices high despite falling global crude oil rates. Kharge accused the ruling Bharatiya Janata Party of financially exploiting citizens, stating the public is treated solely as a revenue source to increase tax collections.
Key Highlights
- Congress president Mallikarjun Kharge questioned the government for maintaining high domestic fuel rates despite falling global crude oil prices.
- Crude oil plunged from a conflict peak of $138 per barrel to $70.71 per barrel, yet domestic fuel prices remain unchanged.
- Commercial liquefied petroleum gas prices doubled during the geopolitical crisis but have not been rolled back after supply normalized.
- The opposition accused the ruling Bharatiya Janata Party of using high fuel taxes to extract revenue from citizens.
The Congress chief questioned why citizens are forced to pay high prices for petrol, diesel, and liquefied petroleum gas when international oil rates plummeted to levels seen before the West Asia conflict. He stated on X that the administration continues to squeeze public savings instead of lowering energy costs.
Kharge presented three specific questions to the government regarding energy pricing. He noted that when the West Asia conflict peaked, global crude oil reached $138 per barrel. At that time, domestic petrol cost Rs 94.77 per litre, and diesel was priced at Rs 87.67 per litre.
The leader of the opposition in the Rajya Sabha pointed out that international crude oil has dropped to $70.71 per barrel. He questioned why the government continues to retail petrol at Rs 102.12 per litre and diesel at Rs 95.20 per litre despite this substantial reduction.
Kharge noted that the government doubled the price of commercial liquefied petroleum gas by citing the war. He asked why these costs have not been rolled back now that fuel supply lines have normalized, pointing out that consumers have received no financial relief.
The Congress president noted that prices for domestic cylinders, 5-kg small cylinders used by migrant workers, and compressed natural gas have all been increased. He questioned why the administration hesitates to implement price cuts now that market conditions have stabilized.
According to the Congress chief, consumers faced heavy financial burdens when global crude oil was expensive. He criticized the administration for making the public bear the brunt of high prices even when raw oil costs have become significantly cheaper.
The opposition leader stated that the public has been reduced to a tool for the government to collect taxes and boost its treasury. The Congress party has consistently attacked the National Democratic Alliance for failing to pass on the benefits of lower global oil prices to retail consumers.
The opposition party maintained its accusation that the government is financially draining citizens through heavy taxation on essential fuels. The party demanded immediate price corrections for petrol, diesel, and liquefied petroleum gas to match prevailing global economic realities.
Future Outlook
Industry analysts suggest domestic oil marketing companies may face intense political pressure to adjust retail fuel prices ahead of upcoming state elections. While state-run refiners have recouped previous losses through prolonged high margins, sustained opposition criticism regarding inflation could force a minor price revision for petrol and diesel. However, the government is likely to retain a significant tax cushion to insulate the fiscal deficit against future global energy market volatility.
FAQs
Why is the opposition criticizing the government over fuel prices?
The opposition, led by Congress president Mallikarjun Kharge, is criticizing the government for keeping domestic petrol, diesel, and liquefied petroleum gas prices high even though global crude oil prices have fallen significantly.
What were the global crude oil prices during the peak of the West Asia conflict?
Global crude oil prices reached a peak of $138 per barrel during the height of the West Asia conflict, which the government previously cited as the reason for raising domestic fuel costs.
What are the current retail prices of petrol and diesel mentioned by the opposition?
According to the statement, retail petrol is being sold at Rs 102.12 per litre and diesel is priced at Rs 95.20 per litre, despite global crude oil dropping to $70.71 per barrel.
