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.
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)
