After the 19-day pre-Karnataka poll gaping, petrol and diesel was again hiked up to 17 paise and 21 paise respectively as state-run oil marketing companies raised the prices which was remain unchanged since 24 April.
The price hike comes after the closed voting of the Karnataka Assembly elections 2018 which gets over on Saturday. The price of petrol reached a record high of Rs 66.14 per litre as against Rs 65.93 per litre on 24 April in Delhi while in the case of diesel, it goes to Rs 76.06 per litre as against Rs 74.63 litre per litre on 24 April.
According to the National Democratic Allianz government, they have no role in increasing the price as the three government-run oil marketing companies- Bharat Petroleum Corp. Ltd (BPCL), Hindustan petroleum Corp. Ltd (HPCL) and Indian Oil Corp. Ltd (IOCL) introduced dynamic fuel pricing system in June thus following the footprints of US and Australia where fuel prices fluctuates as per the global oil pricing changes.
Another reason can also be the epic move of the President Donald Trump to back out from the 2015 accord with energy rich Iran which results a sharp spike of international crude oil prices.
As India id the third largest oil importer in the world, the global market price fluctuation will definitely affect it too. It would adversely affect India’s trade deficit and hence current account deficit which is at 1.9% of GDP.