With Karnataka elections wrapped up, fuel prices are on the rise again

No sooner had the State’s electorate given the BJP the most number of seats in the Assembly elections than the oil marketing companies (OMCs) reverted to daily revision of fuel prices.

Between May 14 and Sunday, the price of petrol had increased by ₹1.62 a litre and that of diesel by ₹1.65 in Bengaluru. Petrol price in Bengaluru on Sunday was ₹77.48 while the diesel rate was ₹68.73. As the Congress had made rising fuel prices an election issue in the run-up to the Assembly polls in April, the BJP-led Union government had reportedly asked OMCs not to resort to daily revision of prices. Otherwise, the OMCs were allowed to revise the rates daily from June 16, 2017, depending on the international crude rates as well as the price of petrol and diesel in other countries.

Consequently, fuel prices remained stagnant across the country from April 24; they were ₹75.86 and ₹67.08 a litre for petrol and diesel, respectively, in Bengaluru. The move to placate the voters of Karnataka thus benefited consumers across the country. But the good days came to an abrupt end on May 14 when OMCs increased the rates by 18 paise (petrol) and 23 paise (diesel). Thereafter, there has been no looking back and the prices have kept climbing.

Crude touches $ 80/bbl

Meanwhile, the international crude prices in the Indian basket touched $80 a barrel on Thursday, an all-time high since 2014, raising concerns about further hikes in fuel prices.

A release from the Press Information Bureau said Saudi Arabia’s Minister of Energy, Industry and Mineral Resources Khalid Al-Falih called the Indian Minister for Petroleum and Natural Gas, Dharmendra Pradhan, on Friday to discuss continued joint cooperation between the two countries and, in particular, the current oil market situation.

While Mr. Pradhan expressed concern about the rising prices and their negative impact on consumers, Mr. Al-Falih assured his commitment towards stable supply and said that the Kingdom, along with other producers, would ensure availability of adequate supplies to offset any potential shortfall and make sure the prices remain reasonable, a release said.