'Does dynamic pricing only go up?' Congress' Manish Tewari on crude dip

Congress MP Manish Tewari slams Centre over high fuel prices despite crude oil plunge; questions if dynamic pricing is only a one-way street as excise duty is hiked

Congress MP Manish Tewari on Monday questioned the Centre over the continued high fuel prices despite a significant drop in international crude oil rates.

 

In a post on X, Tewari said, “Crude oil prices are in a free fall. Today, crude oil is at $64 a barrel. Why is the benefit not being passed on to consumers?” He directly addressed Union Petroleum Minister Hardeep Singh Puri, asking why the principle of dynamic pricing was not being followed.

 

Tewari further asked, “What happened to dynamic pricing? Is it a one-way street that only goes up and does not come down?”

 

The Congress leader’s comments come as the Centre today announced an increase in excise duty on petrol and diesel by ₹2 per litre, effective from April 8. This move comes at a time when global crude oil prices are experiencing a downward trend.

 

Crude oil prices touching lows

 

Global crude oil prices have been witnessing a sustained decline, with Brent crude recently falling below $65 per barrel — its lowest level in nearly nine months. This downward trend is attributed to a mix of rising supply from non-OPEC producers and weakening demand, increased by trade tensions.

 

The recent escalation in the US-China trade conflict, marked by US President Donald Trump's reciprocal tariffs, has intensified concerns about economic growth and oil demand. OPEC has also surprised markets by significantly increasing its oil output, further contributing to the downward pressure on prices. This production hike, coupled with rising global supply and weakening demand, has led to a sharp decline in oil benchmarks such as Brent and West Texas Intermediate (WTI), with WTI recently falling below $60 per barrel.

 

Impact on Indian fuel prices

 

The hike in excise duty on petrol and diesel by ₹2 per litre each is expected to increase the cost burden for industries reliant on these fuels. However, the Ministry of Petroleum and Natural Gas has clarified that this increase will not affect domestic retail prices of petrol and diesel, as it applies only to fuel meant for export. Therefore, consumers will not see an immediate rise in fuel prices at the pump.

 

The excise duty on petrol will rise from ₹11 to ₹13 per litre, and on diesel from ₹8 to ₹10 per litre. This move is seen as a revenue-enhancing measure by the government, despite the current downward trend in global crude oil prices.