Economy

Karnataka polls over, petrol, diesel prices rise after 19 day freeze

Karnataka polls over, petrol, diesel prices rise after 19 day freeze

Companies like Indian Oil Corporation (IOC) have been told not to increase petrol and diesel prices since April 24 in the wake of Karnataka elections at high cost.

The finance ministry has maintained a tough stance on excise duty cut to rein in rising price of petrol and diesel often passing the buck to states to cut higher duties. 52 and diesel shot up to Rs 70. 56. It is already near Rs 75 per litre mark. It remains to be seen if the government takes action to resist an increase in oil prices or customers are left to deal with skyrocketing rates. Over Rs 77 per litre mark was last witnessed in May 2012. The price of crude oil in the global market is at a two-year high of $75 per barrel. Karnataka voted on Saturday for a new assembly and the results will be announced tomorrow. The companies are estimated to have incurred loss of about Rs 500 crore as they did not revise the prices despite a spike in global rates and fall in rupee against the USA dollar.

The oil firms had kept the rates unchanged since April 24 till Karnataka went to polls on May 12.

Oil PSUs have refused to acknowledge if the freeze followed a government diktat so as to help ruling BJP in Karnataka.

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In the last few days, if you look at petrol prices for nearly 20 days, they were nearly unchanged across the country. 13 each. But prices were frozen thereafter. The petrol price in the national capital is at six-year high.

The government may finally come to the rescue of the common man hit hard by rising fuel prices.

The benchmark global diesel rates during this period have climbed from $84. The rupee has fallen to 67.23 per United States dollar, which is at its lowest since February 8, 2017. 62, making imports costlier. We can expect further price hikes in the coming days. It should be noted that the price of petrol in Mumbai touched Rs 82.65; in Kolkata, it was retailing at Rs 77.50; Rs 77.61 in Chennai and Rs 76.01 in Bengaluru. Prior to June 2017 rates were revised on a fortnight basis.

The price of petrol has gone up by $2.9 per barrel, and that of diesel by $2.64 per barrel in the worldwide market in the same time period. 5 a litre in the last 19 days, an analyst tracking the sector said. More taxes on petrol and diesel, more burden on the consumer. The move was made keeping the day-to-day variation of worldwide crude prices in mind. The price of petrol has changed in the 21st day i.e. three weeks later. On 24 April, diesel prices had reached Rs65.93 per litre in Delhi, with petrol prices also peaking to Rs74.63 per litre. The near Rs 83 per litre-mark here was last seen in September 2013.