New Delhi/Shimla: The global crude prices surge sharply—blamed widely on geopolitical tensions linked to policies under Donald Trump.
The critics say these have destabilised world markets. India’s announcement of a marginal fuel “relief” has triggered a storm of backlash from citizens and economic experts alike.
International crude has jumped from around $70 per barrel to nearly $122 in just a month, pushing petrol and diesel prices upward across continents.
Governments worldwide have passed on hikes—30–50% in Southeast Asia, about 30% in North America, and 20% in Europe.
India, however, has chosen a calibrated approach, with the Centre claiming it is absorbing financial pressure to shield consumers.
Amid the global surge in crude, Petroleum Minister Hardeep Singh Puri today announced a cut in duties—particularly a sharp reduction in the special additional excise duty on petrol and diesel, from around ₹13 per litre to about ₹3 per litre—to ease pressure on oil marketing companies.
However, the actual relief at the consumer level has remained limited, with pump prices seeing only marginal changes, if any, as most of the adjustment has gone into offsetting losses of fuel retailers rather than significantly lowering retail rates.
No doubt the cut on oil prices is a welcome move. But the way Puri is twisting the move to reap political benifit for the ongoing elections in five states, the citizens and civil society organisations are out to cut Puri to size.
On the ground, that narrative is facing ire of the citizens, business leaders and experts.
“Relief or Return of Overcharged Money?”
Hardeep Singh Puri has highlighted cuts in certain duties and steps like export taxes on refiners to stabilise domestic prices as if he has done favour to the citizens of the country.
Officials argue that oil marketing companies (OMCs) are currently incurring losses—₹24 per litre on petrol and ₹30 on diesel—and that government intervention is aimed at reducing this burden.
Yet critics say this “relief” barely touches consumers.
“What has been reduced is largely the ‘special additional excise duty’—a levy impacting oil companies, not the end user,” pointed out a policy analyst.
“It protects company margins more than it reduces pump prices.”
A Decade of High Taxes Under Scanner
The outrage is rooted in a longer memory. Citizens and economists argue that when crude hovered between $60–70 for years—and even crashed to record lows during the pandemic—fuel prices in India remained stubbornly high.
Nearly ₹38.89 lakh crore has been collected in fuel taxes over the past decade by the Modi Government.
Taxes often made up over 50% of retail fuel prices. Excise duties were sharply increased when global prices fell.
“Now, when crude rises, the government claims sacrifice. But when crude fell, consumers didn’t see proportional relief,” said an economist tracking energy policy.
Russian Oil, Ethanol Blend—Where Did the Gains Go?
Another flashpoint is India’s procurement of discounted Russian crude over the past few years. Critics allege that savings from cheaper imports were not passed on to consumers.
Even the push towards 20% ethanol blending—which should theoretically reduce costs—has not translated into lower prices at the pump, raising further questions.
The government’s decision to impose export taxes and step in to absorb OMC losses is also being seen as a rollback of fuel deregulation.
“Sudden windfall taxes and heavy intervention may offer short-term relief but dent investor confidence,” warned an industry expert. “Policy stability is the way out if India aims for a $10 trillion economy.”
Citizens Push Back: “Not Generosity, Accountability”
Across social media and public forums, the sentiment is sharp and unforgiving. Puri has been bombarded by citizens seeking answers from him.
“This isn’t relief—it’s returning a fraction of what was overcharged.”
“Government funds are citizen funds—don’t frame it as a sacrifice.”
“You can’t profit in good times and seek applause in bad times.”
Many also point to rising transport costs, disrupted travel, and inflationary pressures hitting daily life—from vegetables to logistics—compounding the anger.
Bigger Picture: Global Crisis, Local Pain
The spike in crude prices—amid global geopolitical tensions—has undeniably strained economies. But in India, the debate has shifted from global causes to domestic accountability.
As fuel remains a critical input for transport, agriculture, and industry, the ripple effects are being felt across sectors, squeezing household budgets and slowing economic momentum.
For now, the government maintains it has provided relief to citizens from a far worse shock. But for many Indians, the question remains:
If this is relief, why does it still feel like a burden? Puri Needs to answer this question..
