Jun 04 2008
Govt. increases petrol price by Rs 5, LPG by Rs 50!
The government finally announced on Wednesday a significant hike of Rs 5 in petrol prices and Rs 3 in diesel price to decrease the pressure on the oil companies facing losses for a long time due to increase in international fuel rate which have touched levels as high as USD 135 per barrel. LPG gas cylinder rates are also gone up by Rs 50. There is no hike in Kerosene prices.
The huge subsidy loss faced by the public sector oil companies has led the government to impose the hike. State-run Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum were together projected to lose Rs 2,46,600 crore on sale of petrol, diesel, domestic LPG and PDS kerosene in 2008-09 in absence of any price hike or duty cuts. Earlier in the day, the Cabinet Committee on Parliamentary Affairs had approved the hike in fuel prices.
Petroleum Minister Murli Deora has also proposed double price for extra cooking gas cylinders. He has also proposed a new distribution scheme for LPG cylinders. Only 8 cylinders will be allowed at the current rates. All extra cylinders will cost twice the amount.
After 10 days of debate over the price increase, the cabinet also agreed to cut the import duty on crude oil to support refining and retailing firms like Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.
It is the second hike in the fuel rates in this year. On February 14, 2008 the price of petrol were hiked by Rs 2 and that of diesel by Re 1 a litre.
Prime Minister Manmohan Singh has already warned on Monday that government is not in a position to fully insulate the consumer from the impact of rising oil prices. He will address the nation at 8:30 pm on Wednesday night to explain the reason for the hike in fuel prices.
People are very upset with the announcement. They are protesting the hike. Public came out at roads and shouts slogan against the decision.
Opposition parties which are already protesting the hike are also protesting the decision. Unhappy at the hike, Left has said the decision as ‘Suicidal Move’. CPI announced a bandh in Kolkata against the hike.
Price of Petrol, currently 45.52 a litre in Delhi, will be now Rs 50.52/Lt, while diesel, which retails at 31.76 rupees, will cost Rs 34.76/Lt.
