A fresh hike in petrol and diesel prices across India has triggered a political confrontation between the ruling Bharatiya Janata Party and the opposition Indian National Congress, days after Prime Minister Narendra Modi urged citizens to reduce fuel and energy consumption amid global economic uncertainty. The Centre increased petrol and diesel prices by around Rs 3 per litre, citing mounting international crude oil pressures and supply disruptions linked to geopolitical tensions in West Asia.
In Delhi, petrol prices rose to Rs 97.77 per litre while diesel climbed to Rs 90.67. In Mumbai, petrol now costs Rs 106.68 and diesel Rs 93.14 per litre. Chennai recorded petrol prices at Rs 103.67 and diesel at Rs 95.25 per litre. Fuel prices continue to vary across states due to differences in value-added tax structures imposed by state governments. The increase comes after state-owned oil marketing companies held retail prices steady for nearly 11 weeks despite rising global crude oil costs.
The Congress party sharply criticised the move, arguing that the timing of the increase — shortly after assembly elections in Assam, Kerala, Tamil Nadu and West Bengal — indicated that the government had delayed the decision for political reasons. Opposition leaders warned that the higher fuel costs would likely worsen inflation, increase transportation expenses, and place additional pressure on household budgets already affected by rising prices of essential goods and services.
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Defending the decision, BJP leaders said India’s fuel price increase remained significantly lower than that seen in several other countries facing the same global energy crisis. BJP spokesperson Pradeep Bhandari accused the Congress of politicising an international issue and described the current situation as a “time for economic patriotism.” In a social media post, he claimed countries such as Pakistan, Malaysia, the United States, the United Arab Emirates, China, and France had witnessed substantially steeper fuel price increases compared to India. Union Minister Kiren Rijiju and BJP IT department chief Amit Malviya also defended the government’s approach, saying India had managed to shield consumers from the full impact of rising global oil prices.
Officials from Indian Oil Corporation Limited said the increase was relatively modest considering current global conditions. Arvind Kumar, Director (Refineries) at IOCL, described the hike as “a very small rise” amid ongoing geopolitical instability and surging crude prices. Brent crude has reportedly crossed the $100-per-barrel mark following disruptions linked to the Strait of Hormuz crisis, a critical global oil shipping route. Transport industry representatives also said the increase had been anticipated, estimating that freight costs could rise by around 3 per cent as a result.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri recently stated that India had maintained uninterrupted supplies of petrol, diesel, and LPG despite global supply shocks. Speaking at the CII Annual Business Summit 2026, Puri said oil marketing companies were facing significant financial stress, with under-recoveries nearing Rs 1.98 lakh crore due to prolonged price controls. He noted that crude oil prices had risen sharply from around $64–65 per barrel to nearly $115, making it increasingly difficult for oil companies to absorb losses without revising retail fuel prices.
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