Oil companies a short while ago announced a 50 Paise increase in Diesel Prices but they selectively ignored increasing Petrol Price due to the two state elections in the first week of December. The 50 Paise hike will also have the burden of local sales tax or VAT and will be effective from midnight tonight. Government allowed State-owned oil firms to regulate fuel prices. The firms from then revise petrol prices on the 1st and 16th of every month based on trends in oil prices and currency exchange rate in the preceding fortnight.
In fact, a 25-30 paise increase is expected for Petrol as the Indian rupee depreciated in the last fortnight against the US dollar. But Government exerted pressure on oil companies as an increase in Petrol prices will affect Congress Party’s fortunes in the elections of Rajasthan and Delhi in the next week.
