The Congress on Friday slammed the Centre over the hike in petrol and diesel prices, warning that the move would fuel inflation and drag down economic growth estimates.
Congress general secretary Jairam Ramesh said the Congress party had consistently demanded that the benefits of softening global crude oil prices over the past few years be passed on to consumers through lower fuel prices.
In a post on X, Ramesh alleged that instead, consumers were “fleeced”.
“Now that international oil prices are climbing up because of the war in West Asia unleashed by the PM's good friends -- the US and Israel -- and assembly elections are over, the Modi Government has increased petrol and diesel prices after having hiked commercial LPG prices earlier.
“This is bound to lead to further inflation that is now projected to be close to 6% for this financial year. Growth estimates will be lowered considerably,” he said.
Congress president Mallikarjun Kharge alleged that there is an economic crisis in the country due to the government's "leadership crisis, lack of vision and incompetence".
In a post on X, he said, "This crisis is a government-made crisis, the consequences of which the people of the country are bearing out of their own pockets on petrol, diesel, and LPG.
"The people of the country must understand that, along with the international fuel crisis, the major reason for the economic crisis in India at this time is the Modi government's leadership crisis, lack of vision, and rampant incompetence," he alleged.
Kharge said when diesel prices rise, inflation has a cascading effect across the country, adversely affecting everyone -- from industries to household budgets and farmers.
"When the West Asia war broke out, the country was told that 'all is well', and the Congress party's questions were ignored.
No concrete steps were taken. Instead, our sovereignty was mortgaged for American 'permission'.
"During elections, the Modi government behaves as if 'everything is normal', and the central government's sole responsibility is to contest state elections.
Now, as the crisis escalates, Modi has started touting the ideas od work from home and fuel savings," the Congress chief said, adding that the party has two questions.
Kharge said the US referred to the 30-day waiver for purchasing Russian oil in March with humiliating words like "allow" and "permission".
"According to reports, the Indian government now wants an extension to that waiver.
The question is why has Modi brought the country to the point of asking for "permission?" "Is it not true that when international crude oil prices were low, the Modi government provided no relief to the general public, instead earning Rs 43 lakh crore from central taxes in 10 years? So, why is the public being burdened with inflation now?" Kharge asked.
The Centre on Friday raised petrol and diesel prices by Rs 3 per litre each, the first increase in more than four years, as state-run fuel retailers grapple with losses amid rising global crude oil prices.
The hike comes just 16 days after assembly elections concluded in Assam, Kerala, Tamil Nadu and West Bengal. Fuel prices had remained unchanged throughout the polling period despite a sharp surge in international oil prices linked to the ongoing West Asia conflict.
Following the revision, petrol in Delhi now costs Rs 97.77 per litre, up from Rs 94.77, while diesel has risen to Rs 90.67 from Rs 87.67 per litre.
Fuel prices had largely remained frozen since April 2022, barring a one-time cut of Rs 2 per litre on both petrol and diesel in March 2024 ahead of the Lok Sabha elections.
Fuel rates continue to vary across states due to differences in value-added tax (VAT). Although petrol and diesel prices are officially deregulated, revisions are often seen as politically sensitive.
(With inputs from PTI)