Fuel prices hiked for 4th time in 11 days
Middle class to suffer the most as petrol tops Rs 100 across cities, diesel nears Rs 100
NEW DELHI, 25 MAY
Petrol and diesel prices were hiked on Monday for the fourth time in 11 days, push-ing petrol prices above Rs 100 per litre across most major cities and deepening concerns over the impact on mid-dle-class households already grappling with rising living costs.
Petrol prices were increased by Rs 2.61 per litre and diesel by Rs 2.71, taking the cumula-tive hike since May 15 to near-ly Rs 7.5 per litre. In Delhi, petrol now costs Rs 102.12 per litre, while diesel has risen to Rs 95.20 per litre.
The first round of hikes on 15 May came shortly after BJP secured victories in three of five state and Union Territory elections, including West Bengal.
Following Monday’s revi-sion, petrol prices climbed to Rs 111.21 per litre in Mumbai, Rs 113.51 in Kolkata and Rs 107.77 in Chennai. Diesel pric-es in the three metros rose to Rs 97.83, Rs 99.82 and Rs 99.55 per litre respectively.
The repeated hikes are expected to hit middle-class
Motorists queue up to refuel their two-wheelers at a petrol bunk in Chennai
families hardest, as rising fuel costs are likely to push up transportation fares, food prices, delivery charges and household expenses.
The increase also comes at a time when domestic LPG cyl-inder prices have risen by Rs 60 since mid-May, while CNG prices have gone up by Rs 4 per kg, adding further pres-sure on household budgets.
The hikes were triggered by prolonged volatility in global crude oil markets following the Iran conflict and disrup-tions in the Strait of Hormuz, a key oil shipping route.
Petroleum Ministry Joint Secretary Sujata Sharma said losses had narrowed to around Rs 600 crore per day from Rs 1,000 crore before 15 May. However, she did not explain why LPG losses, which are supposed to be com-pensated through government subsidies, were being includ-ed in calculations used to jus-tify fuel price hikes.
Congress leader Rahul Gandhi accused the govern-ment of increasing prices in phases after elections ended. “Petrol and diesel prices are being increased in instalments so that people’s pockets are quietly picked,” he said.
FM hits out at critics for peddling pessimism
NEW DELHI, 25 MAY
Union Finance Minister Nirmala Sitharaman on Monday criticised “naysay-ers” who claim India’s econo-my is “crumbling” amid Iran war.
She said a cynical and pessimistic narra-tive was being created, with critics forgetting the “good being done by common people”, especially after Prime Minister Narendra Modi’s austerity appeals. She warned that India cannot afford fear-mongering and stressed the need to instil confidence through words and actions.
‘Govt lost Rs 1 lakh cr’
On fuel pricing, Sitharaman said the government had fore-gone over Rs 1 lakh crore annually through excise duty cuts on petrol and diesel to shield consumers from infla-tion triggered by the West Asia conflict. She defended price hikes, saying earlier steps prevented Rs 10 increase at a time.
“The increases now are coming from oil marketing companies (OMCs) because they are the ones procuring (raw material crude oil) and selling (fin-ished product – fuel),” Sitharaman said on the sidelines of the Cotton Textiles Export Promotion Council export awards event. When asked if the RBI’s dividend of Rs 2.87 lakh crore aligned with the government’s expectations, especially given the current need for support, the minister stated that the calculations fol-low a clear formulation.
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