‘Only 3%’ hike in Petrol-Diesel prices claim misleading
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New Delhi: A chart widely circulated by pro-government journalists on social media has claimed that India recorded only a 3% increase in fuel prices during the recent global energy crisis, compared to much sharper hikes of 30% to 80% in countries such as the United States, United Arab Emirates and Canada. The posts argued that this reflected the Modi government’s success in protecting Indian consumers from global fuel volatility.
Critics, however, have argued that the comparison is misleading because it focuses on a narrow time frame while ignoring the higher base price of fuel in India. They contend that India did not significantly reduce retail fuel prices during earlier periods when global crude oil prices had fallen sharply, the Wire reported.
According to this argument, the widely shared figures represent only a short-term snapshot during a period of global market volatility. Analysts have suggested that a broader, long-term assessment is necessary to understand the actual burden on Indian consumers during the tenure of Narendra Modi.
Observers have pointed to what they describe as the “base effect” as the key reason behind the apparently low percentage increase in India. They argue that fuel prices in India remained elevated even when international crude oil prices declined because the government retained high excise duties and cesses on petroleum products. Critics claim that this allowed the Union government to earn substantial revenues from public sector oil companies instead of passing on lower crude prices to consumers.
The criticism further notes that countries with market-linked fuel pricing systems, such as the US and UAE, tend to witness immediate fluctuations in retail fuel prices whenever global crude prices rise or fall. As a result, those countries experienced sharp short-term spikes during recent global disruptions, producing larger percentage increases in comparative charts.
However, analysts who examined fuel price trends over a decade reportedly found that India’s fuel price increase was considerably higher than in many major economies. According to data cited by commentator Manoj Arora, India recorded a 63% increase in fuel prices over ten years, compared to 36% in the US, 40% in Germany and 39% in South Korea. Only a few countries, such as Australia at 67%, reportedly experienced a steeper rise.
Critics therefore argue that India’s relatively low short-term increase reflects already elevated domestic fuel prices rather than sustained price protection for consumers. They contend that, when viewed over a longer period, India has seen one of the sharpest increases in fuel costs among major economies.