Will lead to further inflation, growth estimates will be lowered considerably: Congress on fuel hike

The Congress on Friday (May 15, 2026) attacked the Modi government over the petrol and diesel price hike, saying it is bound to lead to further inflation and growth estimates will be lowered considerably.

Also read | Petrol and Diesel price hike LIVE

In a post on X, Congress general secretary Jairam Ramesh said that with international oil prices soft or declining for years, the Indian National Congress had been urging that those benefits should be passed on to Indian consumers and that domestic prices of gas, petrol, and diesel should be reduced.

That, however, did not happen and consumers were “fleeced”, he said.

“Now that international oil prices are climbing up because of the war in West Asia unleashed by the PM’s good friends — the U.S. and Israel — and assembly elections are over, the Modi Government has increased petrol and diesel prices after having hiked commercial LPG prices earlier.

“This is bound to lead to further inflation that is now projected to be close to 6% for this financial year. Growth estimates will be lowered considerably,” Mr. Ramesh said.

Petrol and diesel prices were hiked by ₹3 per litre each on Friday (May 15, 2026), the first rate increase in more than four years, amid mounting losses of fuel retailers due to surging global crude prices.

The increase comes 16 days after Assembly elections concluded in Assam, Kerala, Tamil Nadu and West Bengal. Fuel prices had remained unchanged through the polling period despite a sharp rise in international oil prices triggered by the West Asia conflict.

Petrol price was hiked to ₹97.77 per litre from ₹94.77 in the national capital. Diesel now costs ₹90.67 as against ₹87.67 per litre previously, according to industry sources.

Prices have remained frozen since April 2022 but for a one-off reduction by Rs 2 a litre each on petrol and diesel in March 2024, just before Lok Sabha elections. Rates were last hiked in April 2022.

Petrol in Mumbai now costs ₹106.68 a litre and diesel comes for ₹93.14 per litre. In Kolkata, petrol now costs ₹108.74 per litre and diesel ₹95.13, while in Chennai, prices increased to ₹103.67 for petrol and ₹95.25 for diesel.

Rates vary across States due to differences in value-added tax.

Although fuel prices are officially deregulated, revisions are often influenced by political considerations.