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Indian diesel, petrol prices hiked after state elections

Reuters  |  NEW DELHI 

NEW (Reuters) - Indian state fuel retailers raised diesel and petrol prices on Monday to their highest in nearly five years, data from the country's biggest fuel retailer shows.

Opposition leaders criticised the government for the increases, which have come days after a crucial election in the state of that both the ruling party and opposition party have fought hard to win.

Fuel prices had been kept steady for nearly three weeks despite a move to market-linked years ago.

State-owned Corp (IOC), whose price decision is followed by other refiners, said last week that it was keeping rates constant because the "current global price rise is not supported by fundamentals".

It was not immediately clear what prompted the company to raise prices on Monday. A company could not be reached for comment.

"The retailers may have been asked to absorb the incremental hikes as we had seen during state elections (in December)," said Senthil Kumaran, senior analyst at consultancy

An oil ministry did not respond immediately to a request for comment.

Petrol prices have risen by about 0.2 percent and diesel prices by 0.3 percent in major Indian cities this week, according to data provided by IOC.

"This government is blatantly lying to the people by telling them that prices are controlled by market mechanisms," said Abhishek Singhvi, a for the party.

Global this month hit their highest in more than three years on record Asian demand and after the said it would re-impose sanctions on major Iran, which is an to India.[O/R]

(Reporting by Sudarshan Varadhan; Editing by and David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 17:57 IST