Fuel price hike due to global energy crisis: Minister

Union Minister G Kishan Reddy on Friday said the fuel price hike was unavoidable due to the global energy crisis and urged people to understand the circumstances behind the increase.

Responding to the fuel price hike by state-owned oil companies, he also alleged that opposition parties were trying to “provoke people.”

“The Government led by PM Narendra Modi ji took this step under unavoidable circumstances. No domestic issue is responsible for this. Countries and people across the world have been affected by the energy crisis,” Union Minister of Coal and Mines told reporters here.

He alleged that some parties were trying to incite people and spread misinformation about the issue.

Reddy appealed to the public to understand the inevitability of the price hike.

Although it was expected that the West Asia conflict would ease and fuel transportation would improve, crude oil shipments are still not reaching the country smoothly, he said.

Reddy claimed that fuel prices had increased by as much as 40 per cent in countries such as the US.

He further said that implementing welfare programmes would become difficult if Government revenue declined.

Referring to PM Modi’s leadership during the Covid-19 crisis, he said the Centre would continue to engage with the public and explain the situation during the current energy crisis, regardless of whether opposition parties cooperated.

Petrol and diesel prices were hiked by Rs 3 per litre each on Friday — the first increase in more than four years, — amid mounting losses faced by fuel retailers due to surging global crude oil prices following the West Asia conflict.

The hike comes just weeks after the Assembly elections in Assam, Kerala, Tamil Nadu, West Bengal and Puducherry concluded.