With the resumption of dynamic pricing system for transport fuels on Monday by the Indian Oil Corporation (IOC), petrol prices in the national capital shot up to Rs 74.80 per litre. Opposition slammed this price rise as "poll-politics".
The IOC had suspended dynamic pricing system for transport fuels for 19 days to "avoid creating unnecessary panic among the consumers". However, most observers said that the suspension had been done because of impending Karnataka elections.
In Delhi, petrol was priced at Rs 74.80 per litre on Monday, highest since September 2013, when it had hit Rs 76.06 a litre. The price was last changed on April 24 when it was at Rs 74.63 per litre.
The previous highs in these cities were Rs 78.03 (Kolkata, August 2014), Rs 83.62 (Mumbai, September 2013) and Rs 77.48 (Chennai, September 2013).
Reacting to the price hike, former finance minister P. Chidambaram tweeted: "There we go again. More taxes on petrol and diesel, more burden on the consumer. The Karnataka election was only an interval."
Apart from petrol prices, diesel also rose to a fresh record high after the last price movement on April 24. Prices of diesel on Tuesday, in Delhi, Kolkata, Mumbai, Chennai were Rs 66.14, Rs 68.68, Rs 70.43 and Rs 69.79 per litre, respectively.
Even the wholesale price inflation of the country shot up for the month of April at 3.18 per cent due to high food and fuel prices.
"We have decided to temporarily moderate retail prices by not passing on the required increase as we believe the current international oil product prices are not supported by fundamentals. So we have decided to wait for a while," Singh had said, adding: "Passing them on to consumers will unnecessarily create panic."
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)