Petrol, diesel prices start buzzing soon after Karnataka elections

Source: The Hitavada      Date: 16 May 2018 12:21:01


Business Bureau

Oil marketing companies seem to have woken up from a deep slumber as soon as Karnataka polls are over as they have once again started pushing up fuel prices. The prices, that are expected to fluctuate every day since the Government brought in place dynamic pricing system for petrol and diesel, there was a lull for about 18 days. But starting from Monday, the prices are again going up swiftly to see all time high for petrol and diesel in the city in post Local Body Tax (LBT) era.
Petrol that was sold at a price of Rs 83.28 per litre on Monday gained 14 paise on Tuesday night to climb up to an all time high of Rs 83.42 per litre . Similarly, diesel price has also gained 22 paise and jumped from Rs 71.19 per litre to Rs 71.41 on Tuesday night. Diesel price has also hit its all time high since abolition of LBT here.

According to market observers, the prices would see significant high during next few days because rising crude oil price in international market and weakening of rupee against US dollar. Pranay Parate, Secretary of Vidarbha Petroleum Dealers Association and one of the petroleum product dealers, said he was amazed to see price stagnation for so long. “As the crude oil prices were constantly moving up, its impact on diesel and petrol prices should have been reflected in the country. But it did not happen. However, as soon as the Karnataka polls are over the prices are once again climbing up,” he said. Another dealer, who preferred not to be quoted, believed that fuel prices would further strengthen in coming days.

“I think that oil companies might have incurred heavy financial losses during last two weeks in an attempt to maintain the prices. But there is a possibility that they will hike the prices to recover the losses,” he said. In the meanwhile, consumers were seen expressing concerns over the inflated prices. Traders, businessmen, transporters and others were also seen showing dissatisfaction over the current levels of fuel prices. Kuku Marwaha, President of Nagpur Truckers Unity, said that the transporters were bearing the brunt of high fuel prices. “Most of us have lost sizable business because of high diesel cost. We are unable to operate in such a situation where prices are going up beyond our imagination,” he said adding that high fuel prices would inflate cost of all  the commodities.