(Image source from: moneycontrol.com)

The petrol and diesel costs are breaking records day-after-day instantly. On Saturday, petrol raised by incomparable higher prices since 2013 whereas on Sunday breaking its preceding day’s record and on Monday it created a brand-new record in Delhi and Mumbai by touching Rs. 76.57 and Rs. 84.40 respectively.

"Our computation suggests that downstream oil marketing companies (OMCs) are required to increase retail prices of diesel by a steep Rs 3.5-4 a litre and gasoline (petrol) by Rs 4-4.55 per litre in the coming weeks to earn normative gross marketing margins of Rs 2.7/litre," Kotak Institutional Equities said in a report.

It added, "We note that the lack of price hikes over the past three weeks, before Karnataka elections amid a sharp increase in global crude/product prices, has resulted in sharp moderation in gross marketing margins to around Rs 0.5-0.7 a liter."
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The graph of arise in petrol and diesel prices, during and after Karnataka Assembly Elections.

During Karnataka Assembly elections, the state owned oil companies opted not to increase fuel prices for 19 days, however as soon as polling ended the petrol and diesel prices started rising by 98 paisa and Rs. 1.15 per litre respectively.

To put an end to this, a petition has been filed in the court to include petrol and diesel under Goods & Service Tax.

By Sowmya Sangam