After the Karnataka Assembly elections, fuel price hike has gone up across the country. After six days of continuous price hike went up. In the recent days, the price will rise by Rs 4 per liter.
It is clear that the present crisis is the rise in international prices. The decline in dollar exchange rates along with the price of crude oil became like a sprout in the cut. But despite these issues, the fuel price was not changed for three weeks before Karnataka election; Exactly 19 days.
Here is the government’s strategy of blinding milk. The Central Government has been committed to preventing the rise of the price rise in the price of inflation against the BJP during elections. Government intervened in the market. As a result, the government has been exempting the oil companies who have the right to determine the fuel prices on crude oil prices in the international market for three weeks.
The central and state governments have not yet decided to cut taxes on diesel when prices are falling. Petrol and diesel prices are about half the taxes.
It is an open secret that the central and state governments see fuel prices over time as a duck duck. But the former governments often intervened in the market to control the price rise. Earlier in the state, the UDF and LDF governments have been forced to cut taxes on fuel prices. The Central Government has once again provided the right to the daily pricing of the companies. This is the model for foreign countries.
Oil prices are likely to remain in the international market. OPEC countries and Russia decided to reduce production; The price. Iran’s main partner in the Gulf region was the reliance on India’s oil imports. But this way is getting closer. The US withdraws from the nuclear deal with Iran will lead to trade sanctions against them. This will be a long-term threat to the international oil market.