Fuel prices in India up by only 4%, among world's lowest outside Gulf nations: BJP

The BJP on Tuesday defended the recent fuel price hike by the government, triggered by the ongoing West Asia crisis and the disruption in the Strait of Hormuz. The party said that the the 90-paise hike in petrol and diesel prices is among the lowest anywhere in the world outside heavily subsidised Gulf economies.

The hiked prices of Petrol and diesel has marked the second increase in fuel rates in less than a week after state-run oil firms ended a nearly four-year freeze on revisions.

On Friday, petrol and diesel prices were raised by Rs 3 per litre for the first time in more than four years, as surging global crude prices following the Iran war forced state-run fuel retailers to pass on part of their mounting losses after months of holding rates steady through key state elections.

In a post on X, BJP IT department head Amit Malviya said consumers across the world have borne the impact of the crisis through steep increases in fuel prices.

"Fuel prices have surged across the world. Brent crude has stayed above $100 a barrel," he said.

"Even after the recent revision of 91 paise per litre, fuel prices in India have risen by only about 4 per cent, among the lowest increases anywhere in the world outside heavily subsidised Gulf economies," Malviya added.

Malviya said India has remained an exception as public sector oil marketing companies absorbed substantial losses instead of immediately passing on the burden to consumers.

"For 76 days after the crisis began, Indian public sector OMCs absorbed massive under-recoveries, reportedly around Rs 1,000 crore per day, instead of passing the burden directly to citizens," he said.

He also shared comparative figures of fuel price increases in several countries, claiming that petrol prices rose by 89.7 per cent in Myanmar, 56.3 per cent in Malaysia, 54.9 per cent in Pakistan and 52.4 per cent in the UAE.

According to him, diesel prices increased by 112.7 per cent in Myanmar, 71.2 per cent in Malaysia, 44.9 per cent in Pakistan and 86.1 per cent in the UAE.

Malviya said petrol prices rose by 44.5 per cent and diesel by 48.1 per cent in the United States, while the increases stood at 19.2 per cent and 34.2 per cent, respectively in the UK.

In France, petrol prices rose by 20.9 per cent and diesel by 31 per cent, while Germany saw increases of 13.7 per cent in petrol and 19.8 per cent in diesel prices, he added.

He claimed many critics deliberately ignore the larger global context while debating fuel prices in India.

Global crude prices have surged more than 50 per cent since US-Israeli strikes on Iran on February 28 and Tehran's retaliation, disrupting flows through the Strait of Hormuz, a key artery for global oil shipments.

(With PTI inputs)