The government raised retail prices of petrol by ₹2.61 per litre and diesel by ₹2.71 per litre on Monday, 25 May 2026. This marks the fourth fuel price hike in just ten days, pushing prices to their highest level since May 2022.
Key Developments
- Current retail rates: Petrol ₹7.35/litre, Diesel ₹7.53/litre – a cumulative rise of about ₹7.5 per litre since 15 May 2026.
- Mallikarjun Kharge, president of the Congress, called the increase a “daily robbery” and accused the Modi government of “sprinkling petrol to burn the savings of common people”.
- Rahul Gandhi labelled Prime Minister Narendra Modi “mehangai manav” and said the hikes are being done in “instalments” that quietly erode household pockets.
- Arvind Kejriwal, convenor of the AAP, asked why India is not buying cheaper crude from Russia and Iran.
- Ragini Nayak, spokesperson for the Congress, raised concerns about oil‑supply disruptions and asked what the government is doing to free ships stranded in the Strait of Hormuz.
Important Facts
- The cumulative price increase of ≈₹7.5 per litre since 15 May 2026 is the highest since May 2022.
- Kharge compared the current rise with the period of the UPA, noting that international crude prices then surged, yet retail fuel prices now have risen even though crude prices are relatively stable.
- According to Kharge, petrol price climbed from ₹71.41 in 2014 to ₹102.12 in 2026; diesel rose from ₹56.71 to ₹95.20 over the same period.
- Shares of public sector oil companies recorded gains, leading the opposition to accuse the government of “profit over people”.
Exam Relevance
The episode touches upon three core UPSC themes. In GS‑3 (Economy), it illustrates how fuel price volatility feeds inflation and strains household budgets, especially for farmers and MSMEs. In GS‑2 (Polity), the sharp criticism from opposition leaders highlights the political accountability of the executive and the role of parliamentary debate ahead of elections. Finally, the reference to importing cheaper crude from Russia and Iran and the concern over vessels in the Strait of Hormuz underscores the strategic dimension of energy security in international relations.
Way Forward
To mitigate the impact on consumers, the government could consider a calibrated reduction in fuel subsidies, diversify import sources to include lower‑priced crude, and strengthen strategic petroleum reserves. Transparent price transmission mechanisms and timely monitoring of inflation effects would help balance fiscal prudence with social equity. Strengthening dialogue with opposition parties may also ease political friction and foster consensus on long‑term energy policy.