Congress Criticizes Modi Government Over Fuel Price Hike Amid West Asia Crisis
'Why Modi govt deceiving public': Congress slams BJP over fuel price hike amid West Asia crisis
Image: Deccan Herald
The Indian National Congress has accused Prime Minister Narendra Modi's government of failing to pass on past oil price reductions to consumers while now increasing fuel prices due to the West Asia crisis. They claim this has worsened India's dependence on oil imports and will lead to rising inflation affecting essential goods.
- 01Congress claims the Modi government collected ₹25,000 crore from windfall profits in 2022-23 due to high fuel taxes.
- 02India's dependence on crude oil imports has risen from 80.6% in 2015-16 to 89.44% projected for 2024-25.
- 03Domestic crude oil production has decreased from 36.9 million metric tonnes in 2015-16 to 28.7 million metric tonnes.
- 04Congress alleges that rising fuel prices will lead to a new wave of inflation, impacting essential items like milk and vegetables.
- 05Rajeev Gowda questioned the timing of the fuel price hike, suggesting it was politically motivated after recent elections.
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The Indian National Congress has sharply criticized the Modi government for increasing fuel prices amid the ongoing crisis in West Asia, arguing that the government has failed to pass on previous reductions in oil prices to the public. Congress Research Department Chairman Rajeev Gowda pointed out that while crude prices fell in 2014, the benefits were not shared with consumers, allowing private firms to profit instead. He highlighted that India's dependence on crude oil imports has surged from 80.6% in 2015-16 to a projected 89.44% in 2024-25, while domestic production has declined from 36.9 million metric tonnes to 28.7 million metric tonnes during the same period. Gowda also raised concerns about the impact of rising fuel prices on inflation, particularly for essential goods such as milk and vegetables, which have already seen price increases. He questioned the government’s commitment to economic stability and transparency, alleging that the timing of the price hike was politically motivated, occurring only after recent assembly elections.
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The increase in fuel prices is expected to lead to higher transportation costs, which will subsequently raise prices of essential goods across India.
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