Tamil Nadu Chief Minister Vijay has condemned the rise in fuel prices mandated by public sector oil companies under the Union Government. He labelled the price increase as “unacceptable” and has urged for an immediate retraction of the hike. This criticism comes after the companies raised the prices of petrol and diesel by Rs 3 per litre. The current context of rising Brent crude oil prices, which have surpassed USD 100 per barrel due to conflicts in West Asia, has heightened the issue.

Concerns for Lower-Income Groups and Transport Workers

The Chief Minister expressed particular concern for the financial strain that this fuel price increase will place on poorer and middle-class households. He noted that the rise in fuel prices could significantly impact those who depend on two-wheelers and scooters for their daily commute. The timing of this increase, occurring after assembly elections in five states, has been deemed inappropriate.

Furthermore, Vijay highlighted that transport workers, many of whom operate vehicles on loans, are likely to face additional economic burdens because of these price escalations. He indicated that this situation could also lead to higher rents for rental vehicles, further affecting the financial landscape for the lower-income population. This, he argued, could diminish their purchasing power while increasing the cost of daily necessities.

Vijay pointed out that the hikes not only impact individuals but also carry broader implications for small businesses. As the operating costs for micro, small, and medium enterprises increase, he warned of a potential slowdown in both market activity and exports, creating a ripple effect on the economy.

Call for Immediate Action from the Union Government

Following the price hike, petrol prices in New Delhi have risen from Rs 94.77 to Rs 97.77 per litre, while diesel prices have increased from Rs 87.67 to Rs 90.67 per litre. These adjustments have raised concerns among consumers and small enterprises alike regarding their ongoing and future financial stability.

The recent fuel price revisions coincide with intensifying global energy supply issues, stemming from ongoing tensions in West Asia and disruptions within the Strait of Hormuz, a critical maritime route for crude oil transport. Brent crude prices have consistently remained above USD 100 per barrel since February, driven by the escalating conflict involving nations such as the US, Israel, and Iran. This regional instability continues to impact global fuel markets profoundly, particularly as several West Asian countries are significant energy suppliers.

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