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Petrol prices likely to be hiked by Rs. 5 a litre

September 7, 2012 - New Delhi

Update: The Government has clarified that there is are immediate plans to revise the prices of oil. He said that the cabinet will take the final call.

The petrol prices are likely to be increased once again from Saturday, while the prices of diesel, cooking gas and kerosene are likely to be increased next week. The State-owned oil marketing companies are gearing up to increase the price of petrol by Rs. 5 a litre from Saturday onwards.

The ministry of petroleum and natural gas has drafted a note seeking an immediate increase in prices of fuel and has already circulated it this week. Sources say that the prices of Petrol, being a deregulated commodity, will be hiked on Saturday as the Monsoon session of the Parliament ends today. The proposal to increase the prices of kerosene, diesel and cooking gas will be considered by the cabinet committee next week when UPA chairperson Sonia Gandhi returns from US.

Oil firms including Indian Oil, Hindustan Petroleum and Bharat Petroleum are said to be losing Rs. 17 per litre on diesel from September 1 onwards. Similarly the companies are facing losses on Kerosene and cooking gas adding up to a total daily loss of Rs. 550 crore on sale of these products for the oil marketing companies. The loss is mainly due to the higher crude prices in global markets which is at $112 a barrel. The prices increased by 11% per barrel since July 24.

The Government which is already battling allegations on the coalgate scam and the delay in passing the SC/ST promotion quota bill is likely to face fresh trouble if the prices are increased. Trinamool Congress has already announced that they will oppose any hike in fuel price.

Andhra News

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