Petrol, Diesel Price Surge By 16 Paisa As Lok Sabha Elections End: Why Is This Happening?
Petrol and diesel prices have seen a gradual increase in their prices, majorly in metro cities of the country. Petrol prices rose about 8-10 paise, while diesel rose 15-16 paise. The rise in fuel prices is attributed to the rise in crude oil prices in the international market. As per theories propagated by analysts, it is an outcome of the end of Lok Sabha elections.
Status Update for Major Cities:
- On Tuesday, petrol price in Delhi has increased to Rs 71.17, which is an increase of 5 paise. Diesel price too increased by 9 paise to reach Rs 66.20
- Petrol prices rose to Rs 71.12 a litre against Rs 71.03 on Sunday, while diesel price climbed to Rs 66.11 per litre compared to Rs 65.96, in Delhi.
- Kolkata saw a surge in petrol prices by 8 paise to Rs 73.19 from Rs 73.11 recorded on Sunday. Diesel prices too have hiked by 15 paise from yesterday’s rate price of Rs 67.86/litre.
- In Chennai, petrol is retailing at Rs 73.82, 10 paise higher than Sunday’s rate of Rs 73.72 per litre, while diesel price is set at Rs 69.88, which is 16 paise more than yesterday’s price of Rs 69.72 a litre.
- Mumbai is paying Rs 76.73 for a litre of petrol after a 9 paise hike over Sunday’s rate. A litre of diesel costs Rs 69.27, 16 paise costlier than yesterday’s rate of Rs 69.27.
All the Reasons and Estimations of the Price Surges
After Saudi energy minister Khalid al-Falih indicated that there was a consensus to continue limited supplies between OPEC and allied oil producers, oil prices jumped as much as 1%. The crude oil prices have been under pressure due to trade tensions between US and China. Earlier, the prices edged lower due to demand fears but ended a week higher on rising supply concerns after escalating tensions in the Middle East. International Brent crude futures were at trading USD 72.98 per barrel, up 77 cents, or 1.1 per cent, from their last close.
The rise in oil prices comes a day after the conclusion of Lok Sabha Elections 2019 polling. With polls now drawing to a close, state-owned oil marketing companies (OMC) have hiked the fuel prices. Despite of the sharp movement in global oil prices, the OMCs have been soft on increasing the petrol and diesel prices, complying to the election period. OMCs may now cover up for their previous losses and increase petrol and diesel prices in phases irrespective of market conditions.
Will Petrol Prices Hit The Common Man?
Government sources said that oil companies sold petrol at almost Rs 5 per litre discount and diesel at Rs 3 per litre discount in the months of March and April when average crude oil price of Indian was as high as $67 a barrel and $71 barrel respectively.
According to a market assessment, oil companies lose just over Rs 150 crore per day if retail petrol and diesel prices are under-priced by Re 1 per litre on any given day. Going by this yardstick, OMCs lost several thousand crores in the run-up Lok Sabha elections 2019.
A sudden increase in fuel prices have always hit the pockets of common man more than anyone else, the direct targets for any form of imbalance in the socio-political market, which clearly will strike again. This hike will assumedly continue to remain under the reign of the new government formed too.