International oil prices surged close to USD 100 a barrel after Russian attack on Ukraine. But Diesel and Petrol prices in India continue to be on freeze and are expected to rise once assembly elections in states like Utter Pradesh end. Amid fears of supplies being disrupted because of war, the prices of future contract for Brent crude oil with April delivery system in international platform has been on rise. The last time oil prices go up to such level was in in September 2014. For India, Russian oil supplies account for a very low percentage about 1 per cent. While supplies at the moment seem to be of little worry for India, it is the prices that are a cause of concern. Domestic fuel prices which are directly linked to international oil prices have not been revised for a record 113 days in a row. Retail pump rates would certainly go up once elections end next month, industry sources said. Petrol and Diesel prices have been in the past frozen before crucial elections. There was a 19 day price freeze ahead of Karnataka pools in May 2018, despite international fuel prices going up. However no sooner the elections over, oil companies rapidly passed on to customers the desired increase over 16 straight days post May 14,2018. Similarly they had stopped revising fuel prices for almost 14 days ahead of the assembly elections in Gujarat in December 2017. There was also a freeze on fuel prices between January 16,2017, and April 1,2017, when assembly elections in Punjab, Goa, Uttarakhand, Utter Pradesh and Manipur were held. During 2019 general elections the revision was moderated by not passing on all of the desired increase in rates to consumers and the rate began to increase a day after the final phase of polling for the Lok Sabha elections ended. The current hiatus is the longest since daily price revision was adopted in June 2017.
