This is the trend that govts in India have been following, after the election period is over, fuel prices shoot up. Fuel prices in the country have not been revised for a record in more than four months.

Winning Bizness Desk

Mumbai. Since elections in 5 states are over and exit poll results have also come up, the entire people of India are advised to get ready to face fuel price hikes substantially in the coming days. Experts have also started hinting about this price hike. As per reports, the fuel prices would be hiked to bridge the Rs 9 a litre gap created by international oil prices soaring past USD 100 a barrel. Domestic fuel prices in India are directly linked to international oil prices as India imports 85 per cent of its oil needs. However, fuel prices in the country have not been revised for a record 122 days in a row. Petrol price today stood at Rs 95.41 a litre in Delhi while the Diesel price today stood at Rs 86.67.

The fuel prices in the country have remained unchanged even as global crude prices soar following Russia's invasion of Ukraine. "The oil companies would be free to raise prices in a phased manner once the election is over on March 7," a senior government official with the knowledge of internal discussions on oil prices, said.

Fuel prices not hiked since Diwali

The fuel prices have not been raised since November 4 last year. The Government of India, on the eve of Diwali, had announced reduction of central excise duty on petrol and diesel by Rs 5 and Rs 10 respectively.The move was also seen to have been taken in view of the crucial assembly elections in five states including in the most populous Uttar Pradesh. On February 24, oil prices surged following Russia's invasion of Ukraine. Brent rose above $116 a barrel, while supply disruptions have hit global prices leading to worries over a major setback to the post-COVID economic recovery.

Rahul Gandhi mocks Modi Govt

Congress leader Rahul Gandhi on Saturday took a swipe at the Modi government over impending fuel price hike after assembly polls and asked people to get their petrol tanks filled as he said the "election offer" will end soon. He took to Twitter to take a dig at the central government as campaigning for the last phase of assembly polls in five states ended onSaturday. "Quickly get your petrol tanks full. The 'Election' offer of the Modi government is going to end soon," Gandhi said. The Congress has been accusing the BJP government of stalling the hike in fuel prices during elections and raising the prices soon after the polls are over.

Oil price to hike more than double in international market

With Russia-Ukraine battle seems to have no imminent ending, chances are there that petrol prices in the international market could rise more than double in coming weeks and months. This looks like a clear possibility because Russia has warned that crude oil prices could reach $300 a barrel. According to reports, a senior Russian minister said on Monday that Western countries could face oil prices exceeding $300 a barrel and the closure of the Russia-Germany gas pipeline. Russian Deputy Prime Minister Alexander Novak said in a statement on state television, "It is quite clear that the rejection of Russian oil will have disastrous consequences for the global market. There will be an unexpected jump in prices. If not, it will be $ 300 a barrel."

USA also predicts same

US Secretary of State Antony Blinken also said Monday that oil prices rose to their highest level since 2008, after Washington and European allies were considering imposing sanctions on Russian oil imports. This is the highest level of crude oil in 14 years. While Russian Deputy Prime Minister Alexander Novak said it would take Europe more than a year to replace the amount of oil it received from Russia and would have to pay a very high price. According to him, European politicians need to honestly warn their citizens and consumers what to expect.

Russian oil companies offer big discounts to India

As stringent sanctions imposed by the European Union and US  are crippling business and trade, desperate Russian oil companies are offering huge discounts to India, provided a payment mechanism to bypass the SWIFT ban is quickly approved by the government. According to sources familiar with the development, Russian oil firms are offering 25-27 per cent discount to the dated Brent crude prices.