As and when the ongoing assembly elections will end, consumers in phases may see petrol and diesel prices go up by atleast Rs. 2-3 per litre. This is as the oil marketing companies have until now kept fuel rates very low in the run up to the elections.
As per government sources, oil companies due to surge in crude prices overseas are incurring losses of Rs. 2 and Rs. 3 per litre on sale of petrol and diesel, respectively.
And now to bring about the parity with international rates, some gradual increase in price shall have been to be implemented.
Since February 27, there has not been brought about any price hike in auto fuel prices. And then there were brought about rate cut in fuel rate four times in March and April. The fall has come even as the average Indian basket crude price was at around $61.22 in February.
Fuel rates in India are determined based on the 15-day rolling average of product price in the international markets. But because of the downward revision, OMCs shall not be able to continue with low rates for long and hike the rates post the elections.