Karnataka Polls Effect: Petrol, diesel prices hiked to record high

Before Karnataka went to poll Oil PSUs’ kept the rates unchanged for nearly three weeks notwithstanding the input cost spiking sent back to daily revision in prices as soon as the state voted for a new government on Saturday.

On Monday petrol price was trekked by 17 paise a litre and diesel by 21 paise as PSU firms started transferring the spike witnessed in international rates to the customers. Petrol prices increased from Rs 74.63 per litre to 74.80. While the diesel prices aroused to Rs 66.14 a litre from Rs 65.93.

As per the reports issued by the state-owned oil marketing companies diesel prices have been driven up to its peak. Oil PSUs, who had kept the rates unchanged for weeks before the Karnataka elections began notwithstanding input cost spiking, reverse daily revision in the prices as soon as the state elections were held.

If the freeze escorted a government diktat so as to assist the ruling BJP in Karnataka the Oil PSUs would not accept it. Last week the Indian Oil Corp (IOC) chairman Sanjiv Singh said that the state-owned firms “temporarily moderating” in order to sharp increase in prices and cause dismay among the customers.

On April 24 Diesel and Petrol prices were increased by 13 paise each. However, the prices were reverted back. The BJP government has increased the excise duty approx. nine times between November 2014 to January 2016.  

The central government has decreased the excise the duty by Rs 2 per litre in the month of October the previous year. When the petrol price was Rs 70.88 per litre in Delhi and Diesel Rs 59.14, due to the rise in the excise duty. The domestic fuel prices were driven high, after the global rally in crude prices.

by TNBC Staff Reporter on May 14, 2018

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