Oil’s well until India goes to polls

Oil’s well until India goes to polls

It’s an open secret that during elections there is an informal diktat to keep down petrol and diesel prices, even in the face of a global spike. Should we brace for a shocker after the votes are in?

Amit, who works as a driver in South Delhi, earns ₹15,000 a month, of which ₹2,500-3,000 goes towards petrol for his bike; Ravi, an office assistant, incurs the same expense every month. A businessman like Sanjay Malhotra in Noida (Uttar Pradesh) spends over ₹10,000 a month on petrol. Aside from minor variations here and there, this is how the average Indian’s petrol budget looks like around the country.

Some days it pinches the pocket more than on others, in line with the rise and fall of crude oil prices in the global market. These daily shifts in price were noticeably missing in May last year, when Karnataka went to polls to elect its new government. Once the votes were in, however, petroleum prices began rising continuously until they were in sync with the global rates. Read More

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