Rising retail price of petrol and diesel prices is unlikely to become a problem for the ruling NDA government in the coming general elections as it seems to have tempered its policy of market-determined retail pricing of petroleum products that were hitherto being revised on a daily basis based on international prices.
The move has been necessitated to prevent any consumer outrage that could erupt if there are frequent increases in retail price of petrol and diesel – an upshot in petroleum product prices could have adverse fallout for the ruling BJP during the elections.
Sources said that state-owned oil marketing companies (OMCs) have been told by senior government functionaries to keep the daily price movement of the two petroleum products in check between now and end of elections. This could be done by absorbing a portion of the price rise if the increase is consistent in view of global factors.
Though OMCs have not been issued any written order on retail prices the government, being its largest shareholder, has exercised its control to make sure that consumers are prevented from paying abnormally higher prices.
