New Delhi, March 27 – The Congress party on Friday accused the government of reducing excise duties on petrol and diesel due to upcoming state assembly elections, pointing out that consumer prices in India have not decreased even when global crude oil prices have fallen on seven separate occasions over the past 12 years.
The opposition party's criticism came after the government cut excise duty on petrol to ₹3 per litre and completely exempted diesel from the duty.
Congress general secretary in-charge of communications, Jairam Ramesh, said, "When global crude oil prices fell as they did on seven separate occasions in the past 12 years, consumer prices in India did not decrease."
"The announcement today is a result of the upcoming assembly elections. Wait until April 30th," he said.
Assembly elections are scheduled in Assam, Kerala, and Puducherry on April 9, in Tamil Nadu on April 23, and in two phases in West Bengal on April 23 and 29, while votes will be counted for all elections on May 4.
Pawan Khera, head of the Congress's media and publicity department, said, "If you saw the headlines about petrol and diesel prices 'decreasing' and thought the government was providing relief, you would be mistaken."
He claimed that prices remain the same for both dealers and consumers.
"What has actually been reduced is the 'special additional excise duty', which is a tax paid by Oil Marketing Companies to the government. The words 'special' and 'additional' reveal how unnecessary this tax is," Khera said on X.
He pointed out that these companies have been absorbing losses since the outbreak of the conflict in West Asia.
"The government has now merely agreed to share a small portion of that burden, but reducing the 'special additional' levy – that too almost a month later," the Congress leader said.
"There is some relief, but only in the narrative – not in reality. Instead of creating headlines and misleading people, the government should focus on providing actual relief to consumers," he said.
In another post, Khera highlighted the rise in fuel prices, irrespective of crude prices over the years.
"Modi's Masterstroke: Cheaper crude. More expensive fuel. In May 2014, crude oil was at $106.94 per barrel. Petrol cost ₹71.71 per litre, and diesel ₹56.71. Fast forward to just before the West Asia conflict – crude oil had fallen to around USD 70 per barrel. But petrol was selling at ₹94.72 per litre, and diesel at ₹87.62 in Delhi," he said.
India also bought crude oil from Russia at a discounted rate, but this did not translate into relief for consumers, he said.
"It only made the Ambanis richer," Khera said.
He added, "Because between 2014 and 2026, the government revised the excise duty a total of 21 times, increasing it 12 times. So much for 'Achche Din'!"
The Congress leader also criticized Petroleum Minister Hardeep Singh Puri for saying that the government decided to "take a hit" on its own finances to protect Indian citizens.
"Oh, how magnanimous! The tone is patronising and condescending – packaging as charity and favour what is, in fact, the basic responsibility of any government. Mr. Puri, the government and the money both belong to the people of India. They do not belong to #Epstein," Khera said.
"This language also reeks of entitlement – it sounds more like a ruler doling out favours from his own coffers, rather than a government spending the 'people's money' for the 'people'," he said.
"Clearly, having friends with monarchs like Prince Andrew has deteriorated his sense of democratic responsibility and accountability. Every time he speaks, he undermines his own suitability for the office he holds," Khera said.
Global crude prices have risen by almost 50 per cent since the United States and Israel launched military strikes against Iran on February 28, triggering sweeping retaliation from Tehran.
In a notification issued on March 26, the Finance Ministry cut excise duty to ₹3 a litre, from ₹13 a litre earlier, while the levy on diesel was slashed to nil from ₹10 earlier.
The duty cuts are effective immediately, the ministry said.
Despite the spike in international prices, retail pump rates have not been changed, putting a strain on the finances of oil companies.
The government cuts are expected to provide some relief to oil companies.
Tracking the excise duty cut notification, shares of fuel retailers IOC, BPCL, and HPCL opened higher on BSE.
International oil prices touched USD 119 per barrel earlier this month, before pulling back to around USD 100 per barrel.
India imports 88 per cent of its crude oil and roughly half of its natural gas. These mostly come via the Strait of Hormuz.