In the last three months of 2018 there have been a series of reduction in retail prices of petrol and diesel. However, prices have been marginally increased right at the start of 2019 after being at their respective lowest on December 31, 2018. The retail price of diesel in the capital has been increased by 8 Paise to ₹ 62.24 from ₹ 62.16 and the retail price of petrol went up by 20 Paise to ₹ 68.50 from ₹ 68.30.
The reason behind the increase in retail prices is still uncertain as there have not been any major fluctuations in the crude oil price. According to some of the filling station vendors, the price has been increased in a bid to push the margin by some extent which was reduced at the time when fuel prices were skyrocketing in the country as crude oil prices were high in the global market. Moreover, fuel prices are also likely to remain stable as India has got a waiver from the US and is allowed to purchase crude oil from Iran. The Iranian oil is comparatively cheaper than the crude oil which is imported from the US.
Recently, the Karnataka coalition government had also increased the state tax on petrol and diesel which in-turn had increased the prices in the state. The state tax has been revised by 2 per cent to 32 per cent on petrol and to 21 per cent on diesel since January 1, 2019 in Karnataka.