Petrol, Diesel, LPG Prices Hiked

With the centre deciding on freeing petrol from all pricing controls, and increasing the prices of diesel, Liquefied Petroleum Gas (LPG) and kerosene, the common man will be the worst hit.

In Hyderabad, consumers who have been paying Rs. 53.24 for a litre of unleaded petrol will now have to pay Rs. 57.50, while diesel which cost Rs. 38.96 per litre till the price hike will now cost Rs. 41.17.

A cylinder of LPG, which earlier cost Rs. 305, will now cost Rs. 340. Similarly, kerosene prices have also been increased by Rs. 3 a litre.

It may be mentioned here that state government provides subsidies of its own on LPG and kerosene. The final prices of these products would depend on whether the cash-strapped state government is willing to increase the subsidies on cooking fuels or is letting the centre absorb the public backlash.

The centre had announced an increase of Rs. 3.73 per litre on petrol and by Rs. 2.2 on diesel, while LPG prices were raised by Rs 35. per cylinder and kerosene prices up by Rs. 3 per litre.

The Centre's decision came through an announcement by Oil Secretary S Sundershan, following a meeting of the Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee, on Friday.

Sundershan told media persons that diesel prices would also soon be decontrolled.

The central government's decision will help cut down on government subsidy bills, and will provide relief to oil Public Sector Undertakings, which were forced to sell petroleum products at prices below the international market price because of government controls.

Meanwhile, it is believed that pricing controls on cooking fuels like LPG and kerosene will continue indefinitely. The government heavily subsidises cooking fuel to enable them to be within reach of the common man.

The rise in fuel prices will likely accelerate the rate of inflation further, and with the country reeling under rising prices of essential commodities, many feel that a backlash by the opposition parties will be quick and harsh.

Courtesy: INN News