Post-Polls, Fuel Prices Start Upward Journeys

New Delhi: Just a day after the 2019 Lok Sabha polls came to an end, State-owned oil marketing companies (OMC) on Monday have raised the retail price of petrol and diesel signalling that election induced price moderation for petroleum products has come to an end.

On Monday, petrol prices increased by 9 paisa per litre to Rs 71.12 and diesel by a higher 15 paisa per litre to Rs 66.11 in Delhi, ending 15 day run where the product prices maintained consistent fall. Retail petrol and diesel prices have consistently moved downwards in May even though global oil prices have remained firm.

An executive of State-owned oil marketing termed Monday’s increase routine based on trailing 15 day price of petrol and diesel in international markets. But informed sources said that companies were under instruction from the government to keep product prices moderate during the elections.

With polls now drawing to a close, OMCs may now cover up for their previous losses and increase petrol and diesel prices in phases irrespective of market conditions. This would mean that consumers could face the first shock from higher transport fuel prices during the initial leg of the new government at the Centre.

With global conditions including tension in the gulf region and squeezing of oil supplies from Iran and Venezuela favouring a further increase in crude prices, there could be no letting from higher transport fuel in India unless government cuts its share of excise duty and induced states to reduce VAT. (IANS)

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