New Delhi: Ever since the daily revision of petrol prices was introduced, the state oil marketing companies have been justifying price revisions with market fluctuations in international prices and exchange rates. However, these oil companies have not revised the petrol and diesel prices for the past 6 days. This has raised many eyebrows and brought into question whether the pricing method is really market based or politically motivated.
Even though a considerable fluctuation is seen in the international prices of crude oil and currency exchange rate, the prices of petrol and diesel have remained same at Rs 74.63 and Rs 65.93 in Delhi since Tuesday, April 24. In Mumbai, petrol is available at Rs 82.48 per litre and diesel at Rs 70.2 per liter since April 24.
In India, the three largest state oil companies Indian Oil, Bharat Petroleum and Hindustan Petroleum control more than 90 percent of oil retail market. The prices set by these marketers also act as a benchmark for private retailers such as Essar Oil and Reliance.
Many analysts have alleged that this is a clear case of government’s manipulation of market prices of petrol and diesel. It is common to see such discrepancies when just before the elections, the prices of these fuels see slower rise and soon after the elections there is a steep rise to compensate for the losses. Doubts are being raised that the revision of prices have been halted keeping in mind the Karnataka Assembly elections to be held on May 12.
A media report said that government had given a directive to oil marketing companies to withhold rate hikes till the Karnataka elections are completed. However, the oil retailers and the government have denied any such instruction. However, market analysts remain unconvinced that overlapping of stopping price revision and arrival of election is merely a chance factor.
The prices of crude oil have been steadily increasing in the international commodity market, due to factors such as rise in oil demand, fears of US sanctions on Iran and reduction in production of crude oil by large oil producers. Crude is trading close to $75, an increase of 55 percent since July 1, 2017.
Despite this, the reluctance of the state oil companies has raised suspicions. It seems that though on paper, the prices are deregulated, prices of these commodities are still regulated by the invisible government hand, say some analysts.
