Elections over, fuel prices begin to rise

New Delhi: Petrol and diesel prices started rising soon after the last phase of the general election concluded, and have increased by 70-80 paisa per litre in the past nine days.

Prices have been on the rise since May 20, a day after the final phase of polling for the Lok Sabha elections ended.

In Delhi, petrol now costs Rs 71.86 per litre, up from Rs 71.03 price on May 19. Similarly, a litre of diesel costs Rs 66.69, up from Rs 65.96 a litre on May 19. Petrol in Mumbai costs Rs 77.47 per litre and diesel is priced at Rs 69.88.

While state-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had in the past completely frozen rates during times of elections, they during the Lok Sabha polls moderated the revision by not passing on all of the desired increase in rates to consumers, industry sources said.

They are now recovering the same. The three firms had in the past refrained from increasing oil prices during elections. They took a 19-day price freeze on petrol and diesel ahead of the Karnataka polls in May 2018 despite international fuel prices going up by nearly USD 5 a barrel. But, no sooner were the elections over, they rapidly passed on to customers the desired increase — over 16-straight days post-May 14, 2018, petrol price jumped up by Rs 3.8 per litre and diesel by Rs 3.38.

Similarly, they had stopped revising fuel prices for almost 14 days ahead of Assembly elections in Gujarat in December 2017. These companies had also imposed a freeze on petrol and diesel prices between January 16, 2017, and April 1, 2017, when Assembly elections in five states, Punjab, Goa, Uttarakhand, Uttar Pradesh and Manipur were held.