Senior Congress leader and former Madhya Pradesh Chief Minister Kamal Nath on Tuesday launched a sharp attack on the Centre over rising fuel prices, alleging the government collects approximately ₹30 per litre in taxes on petrol and diesel while oil marketing companies continue to post substantial profits. His remarks came in the backdrop of a recent ₹3 per litre price hike in Madhya Pradesh that pushed petrol to around ₹114.50 per litre and diesel to roughly ₹100.09 per litre.

Key Allegations Against the Centre

Citing official figures, Kamal Nath accused the government of using international market conditions as a cover to burden ordinary citizens. 'The increase in diesel, petrol and CNG prices in the name of international circumstances is nothing but direct loot of the public by the government,' he said. He further alleged that petroleum companies have earned 'lakhs of crores of rupees' in profits over the past few years, with one recent quarter alone seeing profit growth ranging from 28 per cent to 78 per cent across oil marketing firms.

The Windfall Profits Argument

The veteran Congress leader pointed to a pattern he described as selective pricing — one that favoured oil companies over consumers. When global crude prices were low, he argued, the government and oil firms chose to widen margins rather than pass on savings. 'When crude oil prices in the international market were low, the government could have reduced diesel and petrol prices and provided relief to the people. Instead of giving relief, petroleum companies made enormous profits,' Nath said. Now that crude prices have edged higher, he contended, the full burden is being transferred to the public.

Impact on Madhya Pradesh Households

The ₹3 per litre hike in Madhya Pradesh has compounded inflationary pressure on households already squeezed by elevated transportation and logistics costs. Fuel price increases have a cascading effect on food, freight, and daily essentials — a concern Nath highlighted as particularly acute for lower-income and rural residents of the state. This is the latest in a series of upward revisions that have kept pump prices in Madhya Pradesh among the higher ranges nationally.

What Kamal Nath Demands

Nath called on both the Centre and oil marketing companies to share the burden. 'The government can reduce its taxes and petroleum companies can lower a portion of their profits to give relief to the people of the country,' he said. He argued there is fiscal room for a tax cut given the volume of revenue the Centre collects on petroleum products, and that oil firms' recent profit trajectory leaves space for a margin reduction without threatening their viability.

Broader Context

The statement arrives as fuel rates across Madhya Pradesh rose in response to global oil market pressures and higher international crude benchmarks. Critics of the government's fuel pricing framework have long argued that the excise duty structure — built up during the pandemic years when crude was cheap — was never adequately unwound when prices normalised. The Congress has consistently used fuel taxation as a political pressure point, particularly in states where it is in opposition. With assembly elections on the horizon in several states, the fuel price debate is likely to intensify.