- With elections in the country over and global crude oil rates peaking, petrol and diesel prices in India may see an upward move.
Now may a good time to get a tankful of fuel because indications are that petrol and diesel prices may rise post the announcement of 2024 Lok Sabha election results on Tuesday. Prices of both petrol and diesel had been cut by ₹2 per litre in March, a decision made by oil marketing companies and announced by the petroleum ministry.
The revised petrol and diesel prices after the most-recent cut had come into effect from March 15, a move that was hailed by BJP leaders as a welfare measure by Prime Minister Narendra Modi for the people of the country. Critics, however, said it was a move to gain favour from voters during election season. With election results to be announced on Tuesday, there is a chance that the rollback in prices may be reversed.
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If prices of both petrol and diesel do indeed go northwards once again, it may not be absolutely immediately. But there are strong indications that it could take place nonetheless.
Global crude oil prices recently hit a four-wheel high due to factors such as continuing tensions in the West Asia region as well as extension of voluntary output cuts by OPEC+ countries (Organization of the Petroleum Exporting Countries). In a Sunday meeting OPEC+ decided to extend deep oil output cuts well into 2025, as per Reuters. This is believed to be a move made in order to bolster oil prices in the global market.
Closer home, pump owners across the country have had to feel the pressure since the March 15 price cut on petrol and diesel, selling old inventories of both fuels at the new and lower prices. An upward revision of prices could allay their concerns and once again help oil marketing companies in the country.
Fuel prices in India are affected by several factors, besides global rates. A number of taxes and cess are imposed on both fuels by central as well as state governments. Almost every government in the country finds fuel as one of the major sources for revenue generation.
First Published Date: 03 Jun 2024, 09:18 AM IST