NDA Government which claims to itself to be forefront on Economic front deregulated the prices of Petrol and Diesel. For the last few years, the prices are being increased or decreased according to the trends in the International Markets.
But then, NDA Government has increased the Excise Duty whenever the Price went down in the International Markets and did not decrease it when the Prices have increased. On the other side, Oil Companies are gearing up to increase the prices by One Rupee a liter.
Fearing a public backlash in the upcoming Karnataka elections, the Central Government asked the Oil companies to absorb Rs 1/litre price hike. It is interesting to observe that Center did not maintain the price by cutting down the Excise Duty.
That will mean that the prices will be increased as soon as the elections are over. The Union Government seems to be not keen on losing its income but will not bother if that impacts the Oil Companies. And another derivation is the markets regulating the oil prices is a myth.