Rise in fuel prices has made govt vulnerable; how can it manage oil risks?

Retail prices of petrol and diesel would have been 2-3 per cent less than what they are today, if states had converted their VAT into a specific rate at the same level that prevailed in April

A sharp rise in retail prices of petrol and diesel in the last five months has exposed the political vulnerability of the Bharatiya Janata Party (BJP) that leads the government at the Centre. BJP insiders concede privately that the rise in retail prices of petroleum products is one of the more potent issues that can adversely impact the ruling party’s electoral fortunes in the five forthcoming Assembly polls and even in the general elections in 2019.
 
It is time, therefore, for an assessment of the pattern of the rise in retail prices of petrol and diesel in the last