Petrol and diesel prices were hiked by 80 paise a litre for each today, It becomes the fourth increase of fuel price in five days. In the span of four days petrol and diesel prices have gone up by ₹ 3.20 a litre.

Soon after five states elections, results are announced, the fuel price has been increased. The oil firms passed on to consumers the spike in the cost of raw material.

Petrol in Delhi will now cost Rs. 98.61 per litre as against Rs. 97.81 previously while diesel rates have gone up from Rs. 89.07 per litre to Rs. 89.87, according to a price notification of state fuel retailers. In Bengaluru, the petrol price has reached Rs.105. 60 per litre and diesel price has reached Rs. 89.40 per litre. In four days, the petrol and diesel price have gone up by Rs. 3.20 per litre.

All the four increases since the ending of a four-and-half-month long hiatus in rate revision on March 22, have been of 80 paise a litre. These increase increases are the steepest single-day rise since the daily price revision was started in June 2017. 

The Centre has put on hold for an increase of fuel price on November 2021 ahead of five states Assembly elections. Despite raw material (crude oil) soared by about USD 30 per barrel, the oil companies have increased petrol and diesel price before November.

However, the rate revision has take up soon after assembly elections ended on March 10 but it was put off.

According to the NDTV report, the oil companies, who did not revise petrol and diesel rates for a record 137 days despite prices of crude oil (raw material for producing fuel) rising to USD 117 per barrel compared to around USD 82 in early November, are now passing on to consumers the required increase in stages.

Moody's Investors Services on Thursday stated that state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) together lost around USD 2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during the election period, NDTV report says.

Oil companies "will need to raise diesel prices by ₹ 13.1-24.9 per litre and ₹ 10.6-22.3 a litre on gasoline (petrol) at an underlying crude price of USD 100-120 per barrel," according to Kotak Institutional Equities.