Karnataka elections 2018 over, daily revision of fuel prices returns

Karnataka elections 2018 over, daily revision of fuel prices returns

The prices were increased two days after the Karnataka Assembly elections.

Oil PSUs, which had kept rates unchanged for almost three weeks before Karnataka went to polls despite input cost spiking, reverted to daily revision in prices no sooner had the state voted to elect a new government on Saturday.

Apart from petrol prices, diesel also rose to a fresh record high after the last price movement on April 24.

Chairman Sanjiv Singh last week said that the state-owned firms were "temporarily moderating" prices to avoid sharp spikes and panic among consumers. According to the International Olympic Committee website, now petrol in Delhi will be available at Rs 74.80 per litre.

As the people of Karnataka voted for a new government on Saturday, the petrol and diesel prices started mounting up on Monday.

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Those in Eldoret will part with Sh109.05 per litre of super petrol, Sh100.72 for diesel and Sh80.12 for kerosene.

Petrol prices went up by 17 paise in Delhi and Mumbai and by 18 paise a litre Kolkata and Chennai. Prices did not change in the last 19 days, despite rise in worldwide crude oil prices.

Under the dynamic pricing scheme, petrol and diesel prices are revised on a daily basis in sync with global crude oil prices. Prices have since then moved more or less in tandem with global rates barring a few exceptions like the period before a crucial election.

With May 15 increase, petrol price in Delhi was at a new 56 month peak, whereas the price of diesel registered a fresh all-time high. Since then, there had been no increase in the prices - something which analysts feel was directed by the government via an unofficial diktat to oil companies. In Kolkata, petrol will now cost Rs 77.50 a litre from Rs 77.32 a litre and in Chennai it will cost Rs 77.61 a litre from Rs 77.43 a litre.

RAC fuel spokesperson Simon Williams comments: "Prices at the pumps are likely to rise by at least 2p a litre in the next fortnight as a result of the US's decision to pull out of the Iran nuclear agreement".

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