FuelPrices – Government Defends Limited Rise in Petrol and Diesel Rates
FuelPrices – India’s ruling party on Friday defended the recent increase in petrol and diesel prices, saying the country had managed to protect consumers from the impact of rising global crude oil prices for more than two months before introducing a moderate revision in rates.
The statement came shortly after fuel prices were increased by Rs 3 per litre for both petrol and diesel. The revision marked the first hike in more than four years and followed mounting financial pressure on public sector oil marketing companies amid continued volatility in international oil markets.
BJP Highlights Global Fuel Price Trends
Responding to criticism over the price rise, BJP leader and party IT department head Amit Malviya said India had recorded one of the smallest increases in fuel prices when compared with many major economies dealing with the same global situation.
According to him, petrol prices increased by around 3.2%, while diesel prices saw a rise of nearly 3.4%. He added that the latest adjustment should be viewed in the context of the long gap since the previous hike.
Malviya stated that with petrol prices already hovering close to Rs 95 per litre, the additional Rs 3 increase represented only a small percentage change overall. He argued that the revision was measured and designed to avoid placing an excessive burden on consumers.
Oil Companies Absorbed Costs for Weeks
The BJP leader further claimed that state-run oil marketing companies had carried a major share of the financial burden during the period of rising crude prices in the international market.
He said these companies, which dominate India’s retail fuel sector, did not immediately transfer the increased import costs to customers despite sustained pressure in the global energy market. According to him, this approach continued for 76 days after tensions in West Asia intensified and crude oil prices began climbing sharply.
Malviya noted that public sector fuel retailers absorbed a substantial portion of the losses during this period to maintain price stability for consumers across the country.
International Crude Prices Added Pressure
Explaining the reasons behind the eventual revision, he referred to disruptions linked to the Strait of Hormuz and the wider uncertainty affecting oil supply routes. These developments, he said, pushed Brent crude prices above USD 100 per barrel through much of April and May.
The rising cost of crude oil reportedly resulted in significant daily losses for fuel retailers. Citing reports, Malviya said under-recoveries had touched nearly Rs 1,000 crore per day, creating pressure on companies responsible for supplying fuel across India.
He also pointed out that fuel price increases were not limited to India and had affected economies worldwide. According to his remarks, several countries experienced much sharper jumps in fuel costs during the same period.
Diesel Prices Remain a Key Concern
Malviya especially highlighted the impact of diesel prices on transportation and trade. Since diesel plays a major role in freight movement and logistics operations, higher rates often influence the cost of goods and services across sectors.
He claimed that in many countries, diesel prices had surged between 50% and 100% because of supply disruptions and increased demand pressures. In comparison, he argued that India’s latest adjustment remained controlled and limited in scale.
The fuel price increase has nevertheless triggered political debate, with opposition parties questioning the timing of the move and raising concerns about its effect on household expenses and inflation. However, the government continues to maintain that the revision was necessary due to exceptional global circumstances affecting the energy market.