Cong accuses Centre of burdening public with post-poll fuel price hike, questions rising import dependence

The Congress on Saturday accused the Narendra Modi government of burdening ordinary citizens through a fresh increase in fuel prices after elections, alleging that consumers had been denied the benefits of lower global crude oil prices for much of the past decade while taxes and retail rates remained elevated.

Addressing a press conference, Congress research department chairman M.V. Rajeev Gowda questioned the Centre's handling of fuel pricing, energy security, strategic reserves and India's growing dependence on imported crude oil and natural gas. He was accompanied by Congress leader Dolly Sharma.

“There is a race going on between fuel and the rupee as to which will hit the century first,” Gowda said, referring to petrol prices approaching Rs 100 per litre and the rupee nearing the 100-mark against the US dollar.

Congress questions fuel pricing policy

The opposition party alleged that when global crude oil prices declined sharply after 2014, the Centre chose to retain high excise duties and did not pass on the full benefits of lower international prices to consumers.

Congress leaders claimed that at the peak of fuel price increases in October 2021, taxes accounted for about 54 per cent of petrol prices and 49 per cent of diesel prices in Delhi. They further argued that even after India began importing discounted Russian crude following the Russia-Ukraine conflict in 2022, consumers did not receive proportionate relief.

The party also referred to the windfall tax imposed in July 2022, claiming that the government collected around Rs 25,000 crore from such levies in 2022-23 while private refiners continued to benefit from export margins.

Gowda maintained that oil marketing companies subsequently reported substantial profits even as inflation remained elevated and household budgets remained under pressure.

Warns of inflationary impact

The Congress alleged that recent fuel price revisions would have wider economic consequences beyond transport costs.

According to the party, petrol prices in Delhi rose by Rs 4.74 per litre between 14 May and 23 May, with diesel prices registering a similar increase during the period.

Gowda argued that higher fuel prices would inevitably increase the cost of transporting goods and contribute to inflation in essential commodities such as vegetables, fruits, milk and other household items. The party cited recent milk price increases announced by dairy brands as early signs of mounting inflationary pressures.

Sharma accused the government of imposing additional financial burdens on households despite persistent concerns over the cost of living.

“The Modi government is continuously looting the public. Today, you can't even have a full breakfast for Rs 100,” she alleged.

Raises concerns over energy security

The Congress also questioned the government's record on energy self-sufficiency, claiming that India's dependence on imported crude oil had increased significantly over the past decade despite repeated references to “Aatmanirbharta” by Prime Minister Narendra Modi.

Gowda alleged that crude oil import dependence rose from 80.6 per cent in 2015-16 to 89.44 per cent in 2024-25, while domestic crude production declined from 36.9 million metric tonnes to 28.7 million metric tonnes during the same period. He further claimed that dependence on imported natural gas and LPG (Liquefied Petroleum Gas) had also increased substantially.

The Congress leader additionally referred to issues relating to fertiliser imports and questioned the government's management of strategic petroleum reserves.

Questions on Russia oil imports and reserves

The party accused the Centre of failing to adequately explain the country's fuel and LPG situation and demanded greater transparency regarding strategic oil reserves.

Gowda also sought answers on India's energy sourcing strategy, asking why dependence on crude imports from West Asia had increased and whether pressure from US President Donald Trump to reduce Russian oil purchases had contributed to supply challenges.

Questioning the government's claims of self-reliance, he asked why domestic production had failed to increase despite repeated announcements regarding energy projects, including developments in the Krishna-Godavari basin.

The Centre had not immediately responded to the Congress allegations.