Govt decides to hike petrol, diesel prices

Mangalore Today News Network

New Delhi, June 25:  Petrol and diesel will cost up to Rs 3.73 per litre more, households will have to pay an additional Rs 35 per cylinder and poor man’s cooking medium kerosene will be dearer by Rs 3 a litre from today, the government has said.

In a major decision to bring petroleum products in line with market rates, the government today freed petrol from all pricing controls and hiked diesel prices by Rs 2 a litre, Oil Secretary S Sundareshan announced after the meeting of the Empowered Group of Ministers.

Even diesel prices will be eventually freed of all administrative controls, Sundareshan said.

The decisions, taken by the EGoM headed by Finance Minister Pranab Mukherjee, were timed appropriately to take advantage of relatively lower global crude prices, which are hovering around USD 77 a barrel.

Besides, this would also help cut down on the government’s huge subsidy bills, as also relieve the oil marketing PSUs of staggering burden on account of selling these fuels much below the market prices.