Congress questions fuel duty cuts, says consumers see no relief amid rising LPG prices

Senior Congress leader Pawan Khera on Friday criticised the Centre over reports suggesting a reduction in petrol and diesel prices, asserting that consumers have not received any tangible relief despite recent changes in fuel taxation.

The government earlier in the day announced a reduction in central excise duty on petrol and diesel by ₹10 per litre each for domestic consumption, citing the ongoing crisis in West Asia and stating that the move would shield consumers from rising prices. It also imposed duties on exports, including ₹21.5 per litre on diesel and ₹29.5 per litre on aviation turbine fuel (ATF), as part of efforts to manage domestic supply and pricing pressures.

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However, Khera dismissed claims that relief has reached the public, calling the narrative misleading. “If you saw the headlines about petrol and diesel prices ‘coming down’ and thought the government had offered relief to your pocket, you would be mistaken,” he said. “As of now, prices remain the same for dealers and consumers.”

He clarified that the reduction pertains to the ‘special additional excise duty’, a levy paid by Oil Marketing Companies (OMCs), rather than a direct cut in retail fuel prices. “What has actually been reduced is the ‘special additional excise duty’ — a levy paid by Oil Marketing Companies to the government. The words ‘special’ and ‘additional’ reveal how unnecessary this tax is,” Khera stated.

According to him, OMCs have been absorbing losses since the escalation of the West Asia conflict, and the government’s move merely shifts a portion of that burden. “The government has now merely agreed to share a small part of that burden by reducing the ‘special additional’ levy — that too almost a month later,” he said.

Khera argued that while oil companies may see marginal relief, ordinary citizens continue to face high fuel costs. “Relief exists, but only in the narrative — not in reality,” he remarked, urging the government to focus on actual price reductions instead of what he termed “manufactured headlines.”

Meanwhile, concerns over rising fuel-related costs extended to Parliament, where Congress MPs Manickam Tagore B and Vijay Vasanth submitted adjournment motions in the Lok Sabha, seeking a discussion on the sharp increase in commercial LPG cylinder prices.

In his notice, Tagore flagged a 30–40 per cent surge in commercial LPG rates, warning of widespread economic consequences. “The recent hike in commercial LPG cylinder rates has sent shockwaves across the nation, causing panic among the people. The shortage of supply and the subsequent rise in restaurant prices have further exacerbated the situation, putting the common man at the receiving end,” he said.

The MPs cautioned that the rise in LPG prices could trigger a broader economic ripple effect. “The exorbitant increase in commercial LPG rates will lead to skyrocketing food prices, the closure of small and medium-sized enterprises, and the loss of livelihoods for thousands of people,” the notice stated.

They also accused the government of failing to act promptly and demanded immediate intervention. “The government’s inaction has put the nation on high alert. I urge the House to adjourn to discuss this urgent matter and take necessary steps to roll back the hike in commercial LPG rates, ensure adequate supply of LPG cylinders, and control the rise in restaurant prices,” Tagore wrote.

Fuel pricing in India remains a politically sensitive issue, influenced by global crude oil trends, currency fluctuations, and a complex structure of central and state taxes. While the government has periodically adjusted duties to stabilise prices, opposition parties have consistently argued that the benefits of such measures are not fully passed on to consumers.