Union Minister Kiren Rijiju defended recent increases in petrol and diesel prices, saying that India's price rises are smaller than those in other nations.
The move comes as the Indian government attempts to balance the financial stability of public-sector oil companies with the need to protect citizens from inflation. Because fuel costs influence the price of nearly all consumer goods, any hike can trigger wider economic pressure across the country.
Speaking on May 3, 2024, Rijiju said that public-sector oil companies had been absorbing losses to keep prices low for consumers [1, 2]. He said the global surge in fuel costs was due to the ongoing conflict in West Asia [1, 2].
According to data for Delhi, petrol prices increased by ₹3, moving from ₹94.77 per litre to ₹97.77 per litre [3]. This represents a rise of approximately 3.2% for petrol and 3.4% for diesel [2].
Rijiju compared these figures to international trends. "India saw only a marginal increase in petrol and diesel rates compared to several countries that witnessed hikes ranging from 20% to nearly 100%," Rijiju said [1].
He said that many nations saw costs increase by 20% to nearly 100% following the West Asia conflict [1]. He said that while some countries experienced a fuel surge of up to 100%, India's increase remained limited [3].
The government's position is that the modest increase was necessary to sustain the energy sector, while shielding the domestic market from the full volatility of global oil prices [1, 2].
“"India saw only a marginal increase in petrol and diesel rates compared to several countries..."”
The government is attempting to frame domestic fuel hikes as a protective measure rather than a burden. By contrasting a 3% increase with global spikes of up to 100%, the administration seeks to justify the price rise as a necessary adjustment to prevent public-sector oil companies from becoming financially insolvent due to absorbing global market shocks.
