Get ready for a steep hike in your fuel bills once the Lok Sabha elections get over.
"Elections get over on May 12, and if the ongoing increase in global oil prices continues, a hike in petrol prices can be expected on May 15 or by the end of the month," a senior oil company official said.
With an eye on elections, the government directed oil companies to defer fuel price hikes nationwide on April 30, necessitated by high global oil prices and depreciation of the rupee against the dollar.
It, however, allowed companies to increase prices of CNG for vehicles by Rs. 2.95 per kg and piped natural gas by Rs. 1 last Friday in Delhi since elections are over the Capital and there is little chance of losing votes due to high fuel prices.
A senior oil company official told HT that informal diktats to keep price hikes on hold are "nothing unusual" close to polls. "A hike of over Rs. 1 a litre should have been announced if elections across the country were over," he said.
Losses on diesel sales have also mounted to Rs. 6.80 a litre but the monthly increase in diesel prices by 50 paise has also been skipped by oil companies for the second consecutive month following a government diktat.