NEW DELHI: Defending its fuel price hike move, the BJP on Friday claimed that while several countries experienced a steep price rise, India managed to shield citizens from the global oil shock for more than two months and implemented only a “limited and calibrated” rise.
The remarks came hours after petrol and diesel prices were hiked by Rs 3 per litre each, the first increase in more than four years, amid mounting losses suffered by oil marketing companies due to surging global crude oil prices.
Taking to 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% and diesel by 3.4%.
“The Rs 3 per litre increase announced on May 15 is effectively the first fuel price hike in nearly four years, and on a base price of around Rs 95 per litre, it translates to only about a 3.5% increase,” he said.
Malviya claimed that India’s public sector oil marketing companies, which account for nearly 90% of the retail fuel market, absorbed a substantial portion of the increase in crude oil costs for 76 days after the West Asia crisis intensified.
“For 76 days after the West Asia crisis intensified, India’s public sector oil marketing companies did not pass on the full burden of rising international crude oil prices to consumers. They absorbed a significant portion of the cost themselves,” he said.
Citing reports, he claimed that under-recoveries had risen to nearly Rs 1,000 crore per day. “With the Strait of Hormuz facing disruptions and oil supplies getting affected, Brent crude stayed above USD 100 per barrel for most of April and May. The impact was directly visible at fuel stations across nearly every major economy”, he said.
“In several countries, diesel prices have risen between 50% and 100%, especially because diesel directly affects freight movement and trade,” he said.