Fuel prices rise, as government falls

Bengaluru: The Karnataka Assembly election results and the political high drama it created have apparently influenced even fuel prices. When the BJP was declared as the single largest party in the State, simultaneously, the oil marketing companies (OMCs) also revised the fuel prices. Petrol price in Bengaluru was Rs. 77.48 while the diesel rate was Rs. 68.73 on Sunday.

The Congress had made rising fuel prices an election issue at the time of campaigning for the Assembly elections. Thus, the BJP government at the Centre had asked OMCs to not employ daily revision of prices. If not for that, the OMCs could revise the rates daily based on the international crude rates and the price of petrol and diesel in other countries. Hence, fuel prices remained constant from April 24. Petrol was priced at Rs. 75.86 and diesel at Rs. 67.08 per litre.

This was a calculated move to appease the voters of the State. But it lasted only till May 14 when OMCs increased the rates by 18 paise for petrol and 23 paise for diesel. After this, the prices have only been steadily increasing. Meanwhile, the international crude prices in the Indian basket also increased to $80 for a barrel on Thursday. This is the highest the price has reached since 2014 and it reinforces the rising fuel prices.

The Press Information Bureau had notified that Saudi Arabia’s Minister of Energy, Industry and Mineral Resources Khalid Al-Falih had called the Indian Minister for Petroleum and Natural Gas Dharmendra Pradhan. They had discussed the current oil market situation and Pradhan had expressed his concern over the rising fuel prices and its negative impact on consumers. Al-Falih, on the other hand, had ensured the availability of adequate supplies to counter any potential shortage and the stability of the fuel prices.