As the assembly election in five Indian states commencing on the month of April, all state run fuel firms have decided to refrain from raising fuel prices despite of high inflation rate. The ruling government has become extra cautious in terms of dealing with the fuel price and public anger over high inflation. Although petrol prices are directly influenced by the International crude oil market, but prices for diesel, cooking gas, and gasoline are regulated by the government and that allows the state run firms to catch up on the losses they incur when the global crude oil price shots high.

As it always has been, price of fuel price has the capability of directly affecting the fate of any ruling government in India. The government has to tackle high rising inflation and also has to maintain the growth momentum.

According to Sudhir Bhargava, additional secretary, that government has no preparation of regulating the gasoline and petrol prices. In case the prices for both the commodities go to astronomically high levels, then the government would intervene.