Public paying price for Modi govt's mistake: Rahul Gandhi on fuel hike

The Congress on Friday launched a twin attack on the Narendra Modi government over the hike in petrol and diesel prices and its recent messaging on gold purchases, accusing the Centre of burdening ordinary citizens while hurting small businesses and traditional livelihoods.

Lok Sabha Leader of Opposition Rahul Gandhi criticised the fuel price hike, saying the public was being forced to pay for the Modi government’s mistakes.

His remarks came after petrol and diesel prices were increased by Rs 3 per litre each — the first hike in more than four years — as state-run fuel retailers passed on part of the impact of surging global crude oil prices triggered by the Iran war.

In a post in Hindi on X, Gandhi said, “Galti Modi sarkar ki, keemat janta chukayegi (the public will pay the price for the Modi government's mistake). The Rs 3 shock has already arrived, the rest of the vasooli (recovery) will be done in instalments.”

CNG prices in cities such as Delhi and Mumbai were also raised by Rs 2 per kg. Petrol in Delhi now costs Rs 97.77 per litre, up from Rs 94.77, while diesel prices have risen to Rs 90.67 from Rs 87.67 per litre previously. Fuel prices vary across states because of differences in VAT rates.

Global crude oil prices have surged more than 50 per cent since US-Israeli strikes on Iran on 28 February and Tehran’s retaliatory actions that disrupted energy flows through the Strait of Hormuz, a critical route for global oil shipments.

Despite the rise in crude prices, retail fuel rates had remained frozen for months, with the government claiming it was shielding consumers from international volatility. Opposition parties, however, alleged that the freeze was politically motivated because several states were going to the polls.

The hike came after the completion of Assembly elections in five states, including West Bengal, where the BJP came to power for the first time.

Joining the broader attack on the Centre’s economic policies, Congress general-secretary Randeep Surjewala accused the Modi government of pushing the jewellery sector towards an “undeclared lockdown” through its appeal to defer gold purchases and the subsequent increase in import duty on gold and silver.

Addressing a press conference in Delhi, Surjewala termed Prime Minister Narendra Modi’s appeal to avoid buying gold for a year a “death warrant” for the jewellery sector and demanded a special economic package for the 3.5 crore people linked to the industry.

He alleged that the increase in import duty on gold and silver from 6 per cent to 15 per cent would hurt legitimate jewellers while encouraging smuggling and illegal trade. “The Modi government should immediately announce a special economic relief package for 3.5 crore goldsmiths, traders, artisans and workers involved in the gold jewellery industry,” Surjewala said.

He argued that more than 90 per cent of India’s jewellery trade operates through MSMEs and small jewellers, with lakhs of artisans and workers dependent on the sector for survival.

Calling the advisory “disastrous”, Surjewala said it amounted to an attack on traditional artisans, backward communities and cultural practices where gold plays an important social and economic role.

The Congress leader also alleged that the jewellery sector had already suffered due to demonetisation, GST implementation, excise duty measures and mandatory hallmarking norms. Sharpening his attack, Surjewala recalled Modi’s April 2024 election speech in Rajasthan’s Banswara, where the prime minister had accused the Opposition of wanting to “snatch mangalsutras” from women.

He questioned the contradiction between those remarks and the present advice discouraging gold purchases.

The Congress also questioned why the government and the Reserve Bank had increased sovereign gold holdings from 794.64 metric tonnes in September 2025 to 880.52 metric tonnes by March 2026 while advising citizens against buying gold jewellery.

Surjewala claimed the gems and jewellery sector contributes more than 7 per cent to India’s GDP and nearly 12 per cent of exports, with over 85 per cent of exporters belonging to the MSME category.

He cited official data to claim that tens of thousands of MSMEs had shut down in recent years, leading to large-scale job losses, and alleged that the Centre’s policies were worsening the crisis for small businesses and traditional sectors.

With PTI inputs