‘Doing it for the election’: Congress questions fuel tax cut, targets Modi govt over static prices

The Congress on Friday criticised the Modi government over its decision to cut excise duty on petrol and diesel by ₹10 each, arguing that the benefit has not reached consumers. Despite the reduction, fuel prices at retail outlets remain unchanged, triggering a political face-off between the ruling BJP and the opposition.

Congress leaders pushed back against the government’s assertion that the move eases the burden on citizens. Party spokesperson Pawan Khera said the cut appears to benefit oil marketing companies rather than the public.

“Look at the audacity of (oil minister) Hardeep Puri. He says they want to provide relief to the people of India so they don’t face the burden, and therefore, the Government of India is taking the burden. The Government of India is the government of the people of India. The money belongs to the people of India,” Khera said.

He also pointed out that excise duty has been increased multiple times over the past decade, suggesting the current reduction cannot be presented as a major concession.

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Opposition flags poll-linked timing

Congress general secretary Jairam Ramesh linked the timing of the move to upcoming assembly elections in Kerala, Tamil Nadu, West Bengal, Assam, and Puducherry.

“When global crude oil prices fell, as they did on seven different occasions in the past 12 years, consumer prices in India were not reduced. Today’s announcement was because of assembly elections. Wait till April 30,” Ramesh wrote on X.

Karnataka deputy chief minister DK Shivakumar echoed similar concerns, alleging that the decision is politically driven. He also referred to a price hike by Nayara Energy, adding, “The Government of India is burdening us… they are doing it for the election.”

Government defends decision

The Centre maintained that the duty cut is meant to cushion oil companies from rising global crude prices, which have surged from $70 to $122 per barrel. Petroleum minister Hardeep Singh Puri said the government chose to absorb the financial impact instead of passing it on to citizens.

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“The Modi government had two choices—either increase prices drastically for citizens of Bharat, as all other nations have done, or bear the burden on its finances so that Indian citizens are insulated from international volatility. Hon’ble Prime Minister Narendra Modi, in keeping with his government’s commitment over the last four years since the Russia-Ukraine conflict began, has decided to take a hit on its own finances again to safeguard Indian citizens,” he said.

India imports a large share of its energy needs, much of it routed through the Strait of Hormuz, adding to concerns amid ongoing geopolitical tensions.