You could see the heat turn up on the government’s fuel policy after yet another hike in under 10 days. Congress is of the view that the Modi regime is side-lining households for the sake of profits. They point to the running total of increases – Rs 5 in nine days for petrol and diesel – and it’s no coincidence they are using it to rattle some nerves on the inflation front.
What changed at the pump
On Saturday, the state-run outlets put up their rates by a little under a rupee a litre, the most recent in a line of changes. If you look at the dealer numbers in Delhi, a Rs 0.87 nudge means you’ll be paying Rs 99.51 for a litre of petrol. Diesel has also gone up by Rs 0.91 to sit at Rs 92.49.
It was much the same in other big cities, if not quite identical. In Kolkata, petrol is up to Rs 110.64 (a Rs 0.94 move) and diesel to Rs 97.02. In Mumbai, you’re looking at Rs 108.49 for petrol and Rs 95.02 for diesel. Chennai’s figures: petrol at Rs 105.31 and diesel at Rs 96.98.
CNG isn’t any cheaper either. As of May 23rd, there’s been a Rs 1 per kg increase, which is bound to be felt by the commercial and city drivers who run on gas.
Opposition challenge and the stakes
Congress is calling the successive hikes a matter of politics. A post on X had them dubbing the PM ‘Mehengai Man’ and accusing the Centre of ‘fleecing its own’ to make way for the capitalists. They also put out the numbers from Saturday: 94 paise for petrol, 95 for diesel.
They want to make it about more than just the math; it’s a story on the cost of living. Their line is that while you have relief elsewhere, in India the bills are going up. They are asking the government to put the public first and let the corporate margins be.
Why prices are moving
There is a lot of turbulence in the world right now. With the situation in Iran and high crude costs, the state-run retailers have made their moves so the government can offset some of the hit. It’s a clear case of outside forces dictating what we see at the pump.
How city prices have trended
Saturday was on top of what we saw earlier in the week. Back on Tuesday in Delhi, for instance, petrol went from Rs 97.77 to 98.64 and diesel from 90.67 to 91.58. That was the foundation for where we are in the capital today.
Mumbai had an earlier round that put petrol at 107.59 and diesel at 94.08. In Chennai, a prior bump of 82 paise made petrol 104.49, with diesel at 96.11. And in Kolkata, you had petrol at 109.70 and diesel at 96.07.
The ripple effect even made it to tier-2 places like Jaipur, where an earlier change set new rates of 108.91 for petrol and 94.15 for diesel.
What it means for consumers and policy
When you have this kind of back-to-back action, a normal price check becomes a political issue, and the opposition is only too happy to put the Rs 5 in 9 days figure in your face. For the average home, it’s not just the number on the board but how it adds up for transport and the things you need to buy.
Then there is the question for those in power: do you take the hit at the oil marketing companies or you pass it on and keep your fiscal house in order? With energy markets in a state of flux, Congress is on the government to explain itself.
Some of the salient figures:
– A Rs 5 rise in 9 days, says Congress
– Delhi: 99.51 for petrol, 92.49 for diesel
– Mumbai: 108.49/95.02 for petrol and diesel
– CNG is up a rupee a kg since the 23rd
What comes next
All eyes will be on whether the jitters continue. Saturday was the third time in 10 days we’ve seen a hike. If it happens again, the debate on inflation is sure to get more heated. Some calm in the market, however, might let the rhetoric die down and give the consumer a breather.
