Global Energy Crisis Behind Fuel Price Hike, Says Union Minister Kishan Reddy

Union Minister for Coal and Mines G. Kishan Reddy on Friday said the increase in petrol and diesel prices in the country had become unavoidable due to the ongoing global energy crisis .

Addressing a press conference in Hyderabad, the minister said the decision to raise fuel prices was not taken voluntarily by the government, but was the result of extraordinary circumstances prevailing across the world. He urged people to understand that oil companies had revised fuel prices after a gap of nearly four years.

Kishan Reddy said that although there were expectations that tensions in West Asia would ease and fuel transportation would improve, the situation on the ground had not stabilised as anticipated. As a result, disruptions in crude oil supply continued to persist.

He clarified that the government led by Prime Minister Narendra Modi had taken the difficult decision only under highly unavoidable circumstances. According to him, there were no domestic reasons behind the fuel price hike, and the increase was entirely linked to instability in the international energy market.

The minister pointed out that fuel prices had risen by nearly 40 per cent even in developed countries such as the United States. He said the Indian government had made every possible effort to reduce the burden on common people, but the present crisis had made the “limited increase” unavoidable.

Criticising opposition parties, Kishan Reddy alleged that they were attempting to provoke the public by politicising the fuel price issue. He accused them of spreading misinformation for political gain while ignoring the economic pressures and international challenges behind the government’s decision.

He said government revenue was crucial for the implementation of welfare schemes and development programmes. A fall in revenue, he warned, could adversely affect large-scale welfare initiatives for the poor.

Recalling the government’s handling of the COVID-19 pandemic, the minister expressed confidence that the present fuel crisis would also be overcome with determination. He added that the government would directly reach out to the people and explain the actual situation with transparency, irrespective of whether the opposition extended support or not.

State-run oil marketing companies on Friday increased petrol and diesel prices by Rs. 3 per litre each. The hike comes amid a sharp rise in global crude oil prices triggered by continuing conflicts in West Asia, which have reportedly caused heavy losses to oil companies.

Kishan Reddy explained that disruptions in international supply chains had delayed crude oil shipments to India, affecting the country’s energy security.

The price hike has come only weeks after Assembly elections in five states Assam, Kerala, Tamil Nadu, West Bengal and Puducherry concluded, fuelling political debate over the timing of the decision. However, the minister urged that the issue should not be politicised and maintained that adjustments in domestic fuel prices were necessary to safeguard the economy from global market fluctuations.

He expressed hope that international conditions would improve soon and fuel prices would eventually decline.