On Monday, the state-run oil companies hiked the price of petrol and diesel by 17 paise and 21 paise.
Petrol and diesel prices across the country received a substantial hike, with the former set to cost Rs 75 per litre in the national capital with effect from 6:00 am on Wednesday. Petrol prices were increased by 15 paise on Wednesday in Delhi and Mumbai, while it was raised by 14 paise and 16 paise in Kolkata and Chennai respectively.
Oil marketing companies seem to have woken up from a deep slumber as soon as Karnataka polls are over as they have once again started pushing up fuel prices.
The politically risk-free hike not only raised questions about the so-called policy to deregulate energy prices but was also criticised by the Opposition as the worst form of trickery on the people.
The BJP-led government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then also cut the tax once in October previous year by Rs 2 a litre. An analysis of historical fuel price changes by Indian Oil (IOC) shows the company had kept the prices static between 16 January 2017 and 1 April 2017, when the company followed fortnightly revision of fuel prices.
Fuel rates are determined by primarily two factors - the global crude oil rate and the rupee-dollar forex rate.
A litre of diesel on the other hand will cost citizens in Delhi Rs 66.57, Rs 69.11 in Kolkata, Rs 70.88 in Mumbai, Rs 70.25 in Chennai, Rs 67.71 in Bengaluru and Rs 72.36 in Hyderabad.
"The increase in petrol and diesel prices is on account of price movement of the products in the worldwide market".
The price of fuel is expected to skyrocket past R15 per litre.
According to the price build-up data for fuels provided by International Olympic Committee, 42 per cent of the total diesel price charged to consumers comprises taxes while the tax component stands at 52 per cent for petrol.
The rise in worldwide fuel prices is not the only reason for domestic retail prices touching record highs. The centre had cut excise duty on petrol and diesel by Rs 2 per litre in October last year for the first time in four years.