Did Fuel Prices Really Drop After Duty Cut? Indian National Congress Says No

A fresh political battle has erupted over fuel prices after the Indian National Congress on Friday claimed that the government’s recent excise duty cuts on petrol and diesel have not provided any real relief to consumers.

The Centre had announced a reduction in excise duty, bringing petrol duty down to ₹3 per litre and completely removing duty on diesel. However, Congress leaders argue that this move has not translated into lower prices at fuel pumps.

Prices Still Same, Claims Congress

Congress leader Pawan Khera said that despite headlines suggesting cheaper fuel, there has been no actual reduction in prices for dealers or consumers.

He alleged that the relief exists only in public messaging, while the ground reality remains unchanged, leaving consumers without any direct benefit.

What Was Actually Reduced?

According to the Congress, the government has reduced the “special additional excise duty,” which is primarily paid by oil marketing companies and not directly by consumers.

The party argued that this adjustment only shifts some financial burden away from oil companies rather than providing immediate savings to the public.

Oil Companies Still Under Pressure

Khera pointed out that oil companies have been absorbing heavy losses since the escalation of the West Asia conflict, which pushed global crude prices sharply higher.

He claimed that the government has only partially shared this burden and that too after a delay, offering limited relief to the sector.

Debate Over Fuel Pricing Policy

The Congress also highlighted historical fuel pricing trends, arguing that even when global crude prices were lower in recent years, domestic fuel prices remained high.

The party questioned why benefits of cheaper crude imports, including discounted oil from Russia, were not fully passed on to consumers.

Global Factors Driving Prices

Fuel prices have been under pressure globally after crude oil surged nearly 50% following geopolitical tensions involving Iran. Prices had touched around $119 per barrel before easing slightly to about $100.

India, which imports nearly 88% of its crude oil, remains highly dependent on global supply routes such as the Strait of Hormuz, making it vulnerable to international disruptions.

Market Reaction and Bigger Picture

While the duty cuts are expected to provide some relief to oil companies, shares of major fuel retailers like IOC, BPCL, and HPCL saw gains following the announcement.

However, the political debate continues over whether the government’s move is a genuine relief measure or merely a narrative-driven step.