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Indian Government Faces Criticism Over Stagnant Fuel Prices Despite Falling Crude Costs

Opposition demands audits and probes as excise duty hikes offset benefits of lower global oil prices, keeping petrol and diesel prices unchanged.

Oil tanker trucks outside an oil refinery operated by Bharat Petroleum Corp. Ltd., in Mumbai, India, on Friday, April 4, 2025. Indian refiners have rushed back to the market to seek crude supply after President Donald Trump's threat of more penalties against Russia raised concerns over potential disruptions to oil flows.
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She alleged that citizens were being “looted” to serve the interests of oil companies. (PTI photo)
If there is a point to quibble over, it is that the Union government is reaping windfall gains by using a special duty. This is not part of the divisible pool, which means it is not shared with states (REUTERS)

Overview

  • India's average crude oil import price has dropped below $70 per barrel, the lowest since August 2021, while Brent crude prices have fallen below $65.
  • Despite reduced crude costs, retail fuel prices in India remain unchanged due to government-imposed excise duty increases on petrol and diesel.
  • Oil marketing companies are reportedly earning significant margins, with profits of ₹10-12 per litre on auto fuels, sparking public and political scrutiny.
  • Congress leaders allege that government policies prioritize oil company profits over consumer relief and have called for a CAG audit and investigative probes into fuel pricing practices.
  • The opposition has also urged the inclusion of petrol and diesel under GST to lower prices and warned of nationwide protests over the issue.