India To Raise Petrol And Diesel Prices After End Of Elections 2022 This Week: Report

The petrol and diesel prices in India will be raised for the first time in more than four months after the end of assembly elections on Monday, says report citing government officials.

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New Delhi: The petrol and diesel prices in India will be raised for the first time in more than four months after the end of assembly elections on March 7 (Monday), news agency Reuters reported citing government officials.

The fuel prices in the country have remained unchanged even as global crude prices soar following Russia's invasion of Ukraine. The situation has continued to unravel after Russian President Vladimir Putin announced the "special military operation", leading to growing concern over inflation.

"The oil companies would be free to raise prices in a phased manner once the election is over on March 7," Reuters quoted a senior government official with the knowledge of internal discussions on oil prices as saying.

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.

Reuters reported a second official as saying that oil companies have told the Union government that they need a price increase of 10-12 rupees per litre for petrol and diesel.

According to the report, another senior government official said that the government was unlikely to cut fuel taxes to soften the blow, at least before the March 31 end of the fiscal year, considering the impact of that on state revenues.

"We may consider a proposal to cut fuel tax in April," said the official with knowledge of the budget, as quoted by Reuters.