International oil prices (Brent crude) increased by over 9% from March 10 to April 10 to close at $71.73 per barrel. However, petrol prices increased by less than 1% during this period. This is not normal.
With deregulation of petroleum prices, petrol and diesel prices move in tandem with international crude prices in India. This relationship does not hold whenever international oil prices are rising during elections, though.
An analysis of monthly increases in petrol prices and international crude prices between July 2017 and April 2018 shows that petrol prices rose by a significantly lower level than global crude prices four times. Three out of these were in the months before an assembly election.
We have considered a one-month period as starting on the 10th of every month and ending on the 10th of next month. Read More