Selective Fuel Price Adjustments Risk Uneven Burden on Consumers, Warns Consumer Group
New Delhi, 7th May 2026 – As global crude oil prices rise and fuel retailers continue to absorb mounting losses, the Consumer Choice Center (CCC) cautions that the current approach to fuel pricing, where petrol and diesel rates remain frozen while other petroleum products see increases, is creating an uneven and opaque cost burden across consumers.
CCC further warns that requiring oil marketing companies to absorb steep and prolonged losses is not a sustainable approach and risks creating financial strain within the energy sector, potentially leading to future government intervention without a clear or transparent roadmap.
While retail fuel prices have not been revised for nearly four years, global crude oil prices have surged, increasing cost pressures across the energy system. In contrast, prices of commercial LPG, aviation fuel, and industrial diesel have already been adjusted upward in response to rising input costs.
Shrey Madaan, Indian Policy Associate at the Consumer Choice Center, said:
“Not all consumers are being protected equally. While some fuel prices remain unchanged, others have already been adjusted, effectively shifting costs across sectors rather than addressing them transparently.”
CCC notes that such selective pass-through can distort price signals, placing a greater burden on small businesses, transport operators, and consumers who rely on fuels already subject to price revisions.
Fuel pricing plays a critical role in the broader economy, influencing logistics, production costs, and ultimately retail prices. Uneven adjustments can create ripple effects that are less visible but still felt across supply chains.
“Fuel pricing works best when it is consistent and predictable,” Madaan added. “Selective adjustments may offer temporary relief in some areas, but they risk creating inefficiencies and unintended consequences elsewhere.”
The Consumer Choice Center emphasises that aligning pricing mechanisms across fuel categories can improve transparency and ensure a more balanced distribution of costs.
“Policy should aim for clarity and fairness,” Madaan concluded. “Uneven pricing structures make it harder for consumers and businesses to plan and adapt.”