People are going to get a shock soon after the new Prime Minister of India will be announced. As petrol and diesel are going to get a price hike, soon after new government comes to power at the Centre.
Oil companies are waiting to raise the retail price of petrol and diesel by Rs 3-5 per liter. All this is just to make up for the loss that these oil companies incurred by keeping the price same throughout the election season of 2019.
Is it true?
According to government sources, oil companies have been selling petrol at almost Rs 5 per liter discount. For diesel, its Rs 3 per liter discount since March and April. Although the price of crude oil has been raised already in the Indian market.
The current average price of crude oil in the Indian market is set to about $ 67 a barrel for petrol and $ 71 barrel for diesel. With this number, petrol is needed to be sold at Rs 78 a liter and diesel over Rs 70 a liter.
But the price is kept low at around Rs 73 and Rs 66.66 per liter now respectively. Which shows that oil companies are taking a heavy loss in these two petroleum products.
Since the beginning of this year, OMCs are not increasing the petrol and diesel price despite there is a sharp hike in the price of oil globally. And since the starting of March 2019, everyone can notice the static price of petrol and diesel. This happens after the announcement of election dates.
Whether it is a political move to lure votes or something more complex. One thing is clear, people are going to witness a sharp hike in the domestic oil price after the end of this month.
This will give a hard time to the new government. As no one is expecting to pay more for petrol and diesel soon after the new government comes into power. Though, to avoid this obstacle, new government issues a fresh announcement to totter the required hike to prevent a public outrage.
Is it right for the government to control the price of petrol for their own good?
Ethically, it is not right to do so, but this is not the first time the government has controlled the price of petrol. Last year, during the Karnataka state elections, the price of petrol and diesel kept unchanged for 19-days. Even though the petrol price was skyrocketing in the Global market. Soon after the polls, citizens witnessed 16 days non-stop hike in petrol.