The latest round of petrol and diesel price hikes, the fourth in just 11 days, has pushed the country further towards a crisis that threatens to seep into every kitchen, marketplace and bus stand. More alarming is the warning from oil marketing companies that another increase of Rs 20 or more per litre may still be required to cover mounting losses. The immediate trigger is the continuing America-Iran conflict, which sent crude oil prices soaring across the globe. For 74 days, India’s oil companies absorbed the shock while retail prices remained frozen, conveniently coinciding with Assembly elections in states like Kerala, Tamil Nadu, West Bengal and Assam. Politics postponed the pain, but only temporarily. Now the bill has arrived with accumulated losses estimated at a staggering Rs 1.2 lakh crore. India imports nearly 88 per cent of its crude oil needs. Every rise in international prices and every fall in the rupee make petroleum imports more expensive.
Oil companies argue, with some justification, that they cannot continue to bleed indefinitely. Yet economics cannot be separated from social consequences. Fuel is not merely another commodity; it is the bloodstream of the economy. When petrol and diesel prices rise sharply, transport costs rise. Food prices rise. Construction costs rise. Bus fares rise. Delivery charges rise. Eventually, even the humble plate of dal-roti becomes dearer and beyond the reach of the poor. Those who never owned a scooter or car will still pay more for vegetables, milk, and medicines. The affluent may grumble and move on. The poor cannot. For millions already struggling with stagnant wages and shrinking purchasing power, unrestrained inflation can quickly turn despair into anger. History shows that sustained price rises often produce social unrest more effectively than political slogans.
The government cannot pretend helplessness. It benefited enormously when global crude prices crashed after 2014. Excise duties were raised repeatedly, generating massive additional revenue. That windfall should now be used as a cushion to protect citizens from the full fury of global volatility. Passing every rupee of international increase directly to consumers is economically convenient but socially reckless. At the same time, India must confront its unhealthy dependence on imported oil. Reducing consumption is no longer merely an environmental slogan; it is an economic necessity. Better public transport, greater use of electric vehicles, and larger investments in alternative energy are essential. But leadership begins with example. If the government wants citizens to reduce fuel consumption, its leaders must visibly do the same. Convoys can become smaller, official extravagance can be curtailed, and public transport can occasionally become the preferred mode rather than a photo opportunity. It is time for the political class to walk the talk and, perhaps, at times, literally walk.
