CM Siddaramaiah Slams Centre Over Fuel Price Hikes
Synopsis
Key Takeaways
Karnataka Chief Minister Siddaramaiah on Monday, 25 May 2026, launched a sharp attack on the BJP-led central government over what he described as four consecutive fuel price increases in 11 days, calling the hikes an act of 'looting' ordinary citizens. Speaking at a press conference organised by the Karnataka Pradesh Congress Committee (KPCC) office in Bengaluru, he cited specific retail prices and a historical comparison with the Manmohan Singh era to argue that the burden on common people and farmers had become unsustainable.
Context
Siddaramaiah stated in his post — the remarks from a KPCC press conference — that petrol and diesel prices in Bengaluru have reached Rs 110.93 per litre and Rs 98.89 per litre respectively, reflecting a cumulative increase of Rs 7.52 per litre across the recent revision cycle. He said such daily consecutive hikes were 'unprecedented in the country's history' (ದೇಶದ ಇತಿಹಾಸದಲ್ಲಿ ಹೀಗೆ ಪ್ರತಿ ದಿನ ಏರಿಕೆಯಾಗಿರಲಿಲ್ಲ). The Chief Minister also noted that domestic cooking gas cylinder prices had risen to Rs 915, more than double the Rs 412 recorded in May 2014.
Targeting Prime Minister Narendra Modi directly, Siddaramaiah said the BJP had come to power promising a 'Gujarat model' of governance and 'good days' (ಒಳ್ಳೆಯ ದಿನಗಳು), but had instead delivered repeated fuel price shocks. He described the hikes as proof that the government was 'looting the country and ordinary people' (ದೇಶವನ್ನು ಲೂಟಿ ಮಾಡುತ್ತಿರುವುದು ರುಜುವಾತಾಗುತ್ತಿದೆ).
Policy Backdrop
India's retail fuel prices are determined by a combination of international crude oil benchmarks, central excise duties, state VAT, and dealer margins. Since 2017, oil marketing companies have been empowered to revise prices on a daily basis, a mechanism designed to align domestic prices with global movements. Critics, however, argue that the pass-through has been asymmetric — consumers bear the burden of rising crude costs but do not fully benefit when crude falls.
Siddaramaiah made precisely this argument, noting that even with crude oil trading below $100 per barrel and having been as low as $65–$75 per barrel in recent periods, retail prices have continued to climb. He contrasted current prices with those prevailing in May 2014 — petrol at Rs 71.41 per litre and diesel at Rs 56.71 per litre — when Manmohan Singh was Prime Minister, to argue that the central government's excise policy has been the primary driver of the increase rather than global crude alone.
The central government's excise duties on petrol and diesel have been a significant source of revenue, and successive adjustments since 2014 have drawn sustained criticism from opposition parties and state governments that rely on their own VAT receipts but have limited control over the base price.
Stakeholders and Impact
The price increases have the most direct impact on middle-class households, daily commuters, transport operators, and farmers who depend on diesel for irrigation pumps and farm machinery. Higher diesel costs feed through to freight charges, raising the price of essential commodities across the supply chain. Siddaramaiah specifically invoked farmers and common citizens (ರೈತರಿಗೆ, ಜನಸಾಮಾನ್ಯರಿಗೆ) as the groups most exposed to what he called the 'heat of price rise.'
The KPCC press conference signals that the Karnataka Congress government intends to keep fuel pricing at the centre of its political messaging against the BJP-led Centre. Opposition-ruled states have historically used such platforms to demand excise duty cuts or restoration of LPG subsidies, and Karnataka's prominent voice adds weight to that chorus at the national level.
What's Next
With the monsoon session of Parliament approaching, opposition parties are expected to raise fuel pricing and central excise policy as key agenda items. Any announcement by the central government on excise duty rationalisation or LPG subsidy restoration would directly address the political pressure that press conferences like this one are designed to generate. Siddaramaiah's intervention, framed around specific price data and historical benchmarks, is likely to be replicated by Congress leaders in other states as part of a coordinated national campaign on cost-of-living concerns.