Congress chief Mallikarjun Kharge on Tuesday asked the Centre why fuel prices have increased when global crude oil is cheaper than what it was when the Narendra Modi government came to power 12 years ago.
Citing data from the Press Information Bureau, Kharge said on social media that the price of crude oil on May 26, 2014, the day Modi became the prime minister, was $108 per barrel. The price of petrol at the time was Rs 71.5 per litre and diesel Rs 56.7 per litre, the Congress chief said.
“Today, the price of crude oil is less than $99 per barrel, but the prices of petrol and diesel have risen to Rs 102.12 and Rs 95.20 per litre, respectively,” he added.
Kharge said that in other words, while crude oil had become cheaper as compared to 2014, the price of petrol had increased by about 42.8% and diesel about 67.9%.
The Congress chief also said that on May 26, 2014, the value of the Indian rupee was 58.5 against the United States dollar.
On Tuesday, the Indian currency traded at 95.6 against the dollar.
“Every economist knows that the inflation in petrol and diesel affects every sector,” he said. “From transportation to food items, the burden of inflation on the common man increases. Despite this, the government’s profiteering continues.”
He added: “The question is straightforward: when crude oil has become cheaper, why have petrol and diesel become more expensive?”
The Congress chief asked why there had been no relief for the public.
Kharge’s comments came amid a series of fuel price revisions.
On Monday, the prices of petrol and diesel were raised by an average Rs 2.8 per litre nationwide. This was the fourth increase in the prices of the retail fuel within two weeks.
In Delhi, petrol costs Rs 102.1 per litre and diesel 95.2 per litre. The price of petrol in Mumbai is Rs 111.2 per litre and diesel Rs 97.8 per litre. While Kolkata recorded the highest petrol price among the four metros at Rs 113.5 per litre, the rates in Chennai stood at Rs 107.7 per litre for petrol and Rs 99.5 per litre for diesel.
The prices of petrol and diesel have risen by nearly Rs 7.5 per litre since May 15 when the first round of revision took place.
On Tuesday, the price of Compressed Natural Gas was increased by Rs 2 in Delhi to reach Rs 83.09 per kg. This was the fourth time that CNG rates have been hiked in two weeks. It has gotten costlier by Rs 5 per kg since May 15.
The price hikes have come amid elevated global energy prices after supplies were disrupted because of the war in West Asia.
On Tuesday, the price of benchmark Brent crude was nearly $100 per barrel. It was $78 a barrel on February 27, a day before the conflict started. The price had reached as high as $114 per barrel on May 4.
India imports 88% of its crude oil needs and about half of its natural gas requirement. This mostly comes through the Strait of Hormuz, which has been effectively blocked due to the conflict.
Written by Leah Thomas. Edited by Nachiket Deuskar.
Also read: Excesses in the time of austerity
You’ve read Scroll.
Now help sustain it
Scroll is funded by readers, not corporate owners. If you believe our work matters, support our newsroom. Become a member today!
We’re not driven by clicks or corporate interests – just honest, independent reporting. Keep us going. Support Scroll today!