DAYS after Prime Minister Narendra Modi’s appeal for reducing fuel consumption, the prices of petrol, diesel and CNG have been hiked — for the first time in more than four years. The increase had looked imminent amid surging global crude prices triggered by the war in West Asia. It’s obvious that the Assembly elections in West Bengal and other states prompted the government to delay the inevitable. The writing was on the wall after the PM urged the people of the country to tighten their belts.
The government has defended the price hike by pointing to mounting losses faced by oil marketing companies. According to reports, public sector retailers were losing around Rs 1,000 crore daily while crude prices hovered above $100 per barrel. However, this explanation alone cannot convince citizens already grappling with inflation and stagnant incomes. Economic decisions driven by electoral cycles rather than market realities don’t inspire public confidence. For millions of middle-class families, farmers and people running small businesses, higher fuel rates quickly translate into costlier food, transport and essential goods.
The bigger concern is that India’s heavy dependence on imported crude leaves the economy dangerously exposed to geopolitical shocks. New Delhi’s attempt to secure discounted Russian crude has provided temporary relief, but even that avenue remains vulnerable to sanctions, shipping disruptions and diplomatic pressures. The crisis raises questions about India’s long-term energy strategy. The government is insisting on reducing dependence on imported oil, yet progress in public transport expansion, electric mobility and renewable energy adoption remains uneven. Fuel taxes continue to contribute heavily to government revenues, leaving consumers trapped between global volatility and domestic taxation. What India needs today is a comprehensive energy security policy. After all, resilience in the energy sector is a strategic necessity.
