Amid ongoing speculation that fuel prices might rise following the conclusion of assembly elections in five states, central government sources have indicated that a hike in petrol and diesel rates cannot be ruled out. This comes on the heels of a significant increase in the price of commercial LPG cylinders, which rose by ₹993 in a single day. While the official stance from the Center remains that prices are stable, internal sources suggest that oil marketing companies are facing mounting losses due to retail prices remaining unchanged for nearly four years despite global fluctuations.
Impact of Global Geopolitical Tensions
The primary driver behind the potential price revision is the soaring cost of crude oil in the international market, fueled by the ongoing conflict between Iran and the United States. Geopolitical tensions in the Middle East have severely impacted the supply chain, particularly through the Strait of Hormuz—a vital maritime route for global oil tankers. On Thursday, crude oil reached a peak of $126 per barrel, the highest in four years, before stabilizing slightly above $110. Government officials pointed out that since the start of the conflict, crude prices have jumped by over 40% from the pre-war rate of $70 per barrel.
Political Criticism and Economic Concerns
The news has triggered sharp criticism from the opposition, with Congress leader Rahul Gandhi taking to social media to lash out at the Modi government. He stated that he had previously warned about price hikes following the elections, citing the recent LPG hike as clear evidence. Meanwhile, Minister of State for Petroleum and Natural Gas, Suresh Gopi, defended the commercial cylinder price hike, emphasizing the necessity of aligning with international crude oil trends. With “Operation Epic Fury” by the US and Israel intensifying tensions and Iran blocking key energy supply routes in retaliation, the global energy market remains in a volatile state, directly impacting domestic pricing strategies in India.
