Opposition attacks Centre over inflation as Sitharaman defends duty structure, cites Rs 1 lakh crore revenue loss
Fuel prices were increased for the fourth time in less than two weeks on Monday, pushing cumulative hikes in petrol and diesel rates to nearly Rs 7.5 per litre since revisions resumed on May 15 after a prolonged freeze.
The latest increase saw petrol prices go up by Rs 2.61 per litre and diesel by Rs 2.71 per litre across major cities, adding further pressure on household expenses and transportation costs amid rising global oil volatility linked to the West Asia conflict.
In Delhi, petrol prices rose to Rs 102.12 per litre from Rs 99.51, while diesel climbed to Rs 95.20 from Rs 92.49 per litre.
The fresh hikes triggered sharp political reactions, with Opposition parties accusing the Centre of burdening the public despite earlier declines in international crude prices.
Congress president Mallikarjun Kharge accused the BJP-led government of “looting the public’s earnings in installments”, alleging that consumers were denied relief even when global oil prices had softened.
“The BJP’s appetite isn’t satisfied even after slapping a central tax of Rs 1,000 crore daily on petrol-diesel,” Kharge wrote on X while demanding a rollback in fuel prices.
Leader of Opposition in Lok Sabha Rahul Gandhi referred to Prime Minister Narendra Modi as “Inflation Man”, while Samajwadi Party chief Akhilesh Yadav posted an illustration of himself riding a bicycle with the caption: “If one has to move forward, then a bicycle is the only option.”
Aam Aadmi Party convenor Arvind Kejriwal also questioned the government’s fuel strategy, asking why India was “still not buying cheap oil from Russia and Iran.”
Amid the criticism, Union Finance Minister Nirmala Sitharaman defended the Centre’s decision against reducing excise duties on petrol and diesel, saying such a move would result in a revenue loss of nearly Rs 1 lakh crore.
Speaking at the 37th anniversary programme of SIDBI, Sitharaman said “India cannot afford fearmongering” and stressed that the economic challenges confronting the country were largely “externally driven”.
She pointed to continuing tensions in West Asia and disruptions around the Strait of Hormuz, a crucial global oil transit route, as major reasons behind the spike in fuel prices and broader economic uncertainty.
“As the challenges before us are externally driven, we must also recognise that India’s domestic economic situation remains positive and resilient even today,” Sitharaman said.
The finance minister also criticised what she described as a “pessimistic” narrative surrounding the economy, saying some were portraying the situation as if “everything is crumbling”.
Meanwhile, ONGC Director (Exploration) Sushma Rawat said crude oil prices have remained highly volatile due to uncertainty surrounding the West Asia conflict.
“Whenever there is a declaration that there is a peace accord, the crude prices start to dip. And when you realise that there is no solution, the prices go up again,” Rawat told ANI.
Sitharaman said the government remained focused on what she termed the “three Fs” – fuel, fertiliser and forex – as India navigates the continuing impact of the prolonged crisis in West Asia.