The CM warned that the increase would trigger a cascading effect on inflation, disproportionately affecting the state’s poor and middle-class households
Vijay’s demand for a rollback joins a rising chorus of dissent from across the country. File image
Just days after taking the oath of office, Tamil Nadu’s new Chief Minister, C Joseph Vijay, has issued a stern challenge to the central government, demanding an immediate rollback of the Rs 3 per litre hike in petrol and diesel prices. Describing the move as “unacceptable”, the Tamilaga Vettri Kazhagam (TVK) leader warned that the increase would trigger a cascading effect on inflation, disproportionately affecting the state’s poor and middle-class households.
The Post-Election ‘Fuel Shock’
The price revision, which came into effect on Friday, ended a four-year price freeze maintained by state-run oil marketing companies. While Union Minister G Kishan Reddy attributed the hike to the ongoing energy crisis in West Asia and surging global crude prices (currently hovering above $104 per barrel), CM Vijay has framed it as a betrayal of the common citizen.
According to central government sources, oil marketing companies were suffering losses of more than Rs 1,000 crore per day due to rising global crude prices and disruptions in the international energy supply chain. Officials said the Finance Ministry could no longer absorb the burden of compensating oil companies.
The Tamil Nadu Chief Minister’s intervention is particularly significant as he is the first leader from a non-Dravidian party to hold the office since 1969. By taking a confrontational stance against the Centre so early in his tenure, Vijay is clearly signalling that his administration will prioritise “people-centric” economics over federal fiscal pressures.
Economic Impact on MSMEs and Households
In a formal statement, the Chief Minister highlighted that the Rs 3 hike is not merely a transportation issue but a direct threat to Tamil Nadu’s industrial core. He noted that the Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of the state’s economy, are already grappling with high operational costs.
“This increase is a blow to the buying capacity of the downtrodden,” Vijay stated. He further argued that the timing—immediately following the conclusion of the 2026 Tamil Nadu assembly elections—suggests a cynical pattern of suppressing prices during polling only to burden the public once the ballots are cast.
A Growing National Chorus
Vijay’s demand for a rollback joins a rising chorus of dissent from across the country. In Thiruvananthapuram, petrol has already touched Rs 110.76 per litre, sparking public protests, while Congress leader Rahul Gandhi accused the Narendra Modi government of “vasooli” (recovery) from the public to cover for its own policy missteps.
As the TVK administration settles in, the fuel price issue has provided the new Chief Minister with a potent platform to consolidate his image as a populist champion. Whether the Centre will heed the call for a rollback remains to be seen, but for the people of Tamil Nadu, the “honeymoon period” of the new government has begun with a high-stakes battle over the cost of living.
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