Fuel prices have not been revised since April 24: Karnataka poll gimmick? 

Prices of petrol and diesel have not changed in the country since April 24 and in Delhi they have remained at ₹74.63 and ₹65.93 per litre respectively till Sunday, though international fuel rates and the currency fluctuated every day. This is the highest the fuel prices have been in the last 55 months.

State oil companies have not revised the fuel prices apparently deferring their freedom to change prices daily according to fluctuations in the international market.

According to a report in Economic Times, state companies had previously kept prices unchanged during April 16-19. When a media report had stated that the government had asked oil retailers to freeze prices and absorb part of the hike ahead of Karnataka polls, the share prices of Indian Oil, Bharat Petroleum and Hindustan Petroleum — that control more than 90% of fuel retailing — had dropped, leading to a loss of around 9-16% since April 11.

Although the state oil companies and the government have continuously denied that such instructions were given to oil companies, analysts beg to differ. The Assembly elections in Karnataka seems to be a more valid reason for this because the BJP is already facing flak on the issues of farmers, unemployment and corruption, so it would not want the increasing fuel prices to be one more reason to dash its hopes in the southern state.

But since April 24, the retail fuel price have remain unchanged though the international fuel price has increased by $2 per barrel. The finance ministry had also refused to reduce the excise duty on fuel.

The officials of oil companies have also been maintaining a stoic silence over this. Sources say that the officials and employees of oil companies have been asked not to comment on this.

The Petroleum Ministry too has avoided responding to why fuel prices have not changed for almost a week. The ministry officials have been stating that the ministry has nothing to do with the change in fuel prices; the oil companies determine the price.

It is important to note here that the assembly election will be held in Karnataka on May 12 and it is being expected that the fuel price will increase on May 12 night.