The Karnataka voting is over and right after that oil firms hiked the prices of petrol and diesel prices by 17 paise per litre and 21 paise per litre respectively. This is the first major hike since April 24.
According to the official website of Indian Oil petrol price in Delhi was hiked to Rs 74.80 per litre from Rs 74.63 while diesel rates were increased to Rs 66.14 a litre from Rs 65.93. With this, diesel prices have touched a record high while petrol is at a 56-month peak. With this, diesel prices have touched a record high while petrol is at a 56-month peak.
Oil PSUs, who had kept the rates unchanged for more than three weeks before the Karnataka Assembly Elections, reverted to daily revision in prices two days after the elections.
Oil PSUs, which have been since June last year revising auto fuel prices on a daily basis to reflect changes in the cost, have kept pump rates static since April 24, an analysis of daily price notification issued by oil companies showed. Oil PSUs have refused to acknowledge if the freeze followed a government diktat so as to help ruling BJP in Karnataka.
Indian Oil Corp (IOC) Chairman Sanjiv Singh last week said that the state-owned firms were “temporarily moderating” prices to avoid sharp spikes and panic among consumers.
Petrol and diesel prices were last revised on April 24 when they were hiked by 13 paise each. But prices were frozen thereafter. This despite benchmark international rate for petrol going up from USD 78.84 per barrel, which was used for raising the price to Rs 74.63 a litre on April 24, to USD 82.98 now, according to sources privy to fuel pricing methodology.