Sunday, May 15, 2011

Petrol price hiked by Rs. 5 per litre

A day after election results of five state assemblies were announced, state-owned oil companies jacked up the price of petrol by Rs 5 per litre on Saturday, the sharpest one-time increase ever.
The petrol price hike came into effect from Sunday. An oil ministry official, pointing to the rising price of crude internationally (a barrel has touched $ 110), said another price rise was coming.
This is the eighth hike in petrol prices after the Union government accepted the Kirit Parikh Committee's recommendation on June 25, 2010, to deregulate them. Petrol in Delhi was then selling at Rs 51.43 per litre. By allowing the oil companies to hike petrol prices, the government has made the "rich man's fuel" costlier by Rs 15 a litre over the last 11 months. It works out to a 32 per cent rise in less than a year.
Prices of diesel and domestic LPG are likely to be up by Rs 3-4 per litre and Rs 20-25 per cylinder respectively after a group of ministers headed by finance minister Pranab Mukherjee takes a decision on the matter at a meeting scheduled for next week.
{mosimage}Petrol will now cost Rs 63.37 per litre at Indian Oil Corporation outlets in Delhi - up from Rs 58.37 a litre. Bharat Petroleum stations will start charging customers Rs 63.38; Hindustan Petroleum has set the price at Rs 63.39 per litre.