New Delhi: The BJP on Friday defended the hike in fuel prices, claiming that India managed to shield citizens from the global oil shock for more than two months while implementing only a “limited and calibrated” increase, even as several countries witnessed a steep price rise.
The remarks came 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.
Prime Minister Narendra Modi recently suggested measures to reduce fuel consumption, including the use of metro services, carpooling, electric vehicles, and work-from-home arrangements, to help conserve foreign exchange reserves amid the West Asia crisis.
In a post on 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 per cent and diesel by 3.4 per cent.
“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 per cent increase,” he said.
“India emerged as a distinct and noteworthy exception in this entire picture. India recorded the lowest increase among major economies,” he added.
The BJP leader claimed that India’s public sector oil marketing companies, which account for nearly 90 per cent 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.
He claimed that between February 23 and May 15 this year, several countries, including Malaysia, the UAE and the US, witnessed a steep rise in fuel prices.
Malviya, sharing data, claimed Pakistani people were paying nearly 55 per cent more for fuel than they were three months ago, while Malaysia witnessed increases of over 56 per cent. In the United States, prices rose by nearly 45 per cent.
“In several countries, diesel prices have risen between 50 per cent and 100 per cent, especially because diesel directly affects freight movement, trade and logistics,” he said.
“Only Saudi Arabia saw no increase because of its direct subsidy mechanism. But among major economies, India remained the country where the burden on ordinary citizens was kept the lowest,” he added.
He said fuel price control has a direct bearing on inflation as it affects transportation, food prices, logistics, construction costs and household budgets.
“The real story is that while most countries around the world saw petrol and diesel prices rise by 10 per cent, 20 per cent, 50 per cent, and in some cases even 90 per cent, India managed to limit the increase to around 3 per cent,” Malviya said.
BJP national spokesperson Pradeep Bhandari also accused the Congress of indulging in “political opportunism” at a time of global energy crisis.
“In India, fuel prices have increased by only around 3 per cent, compared to the global average increase of over 20 per cent.
“140 crore Indians are standing with economic patriotism under Prime Minister Narendra Modi,” he said in a post on X.
