Petrol price may go up by Re 1 by August end

Mangalore Today News Network

New Delhi, August 6: The government is planning to raise the price of petrol by Re 1 by the end of August, sources in Oil Ministry tell Network18.

Sources say that in view of the international crude oil prices nearing a three-month high at per barrel, the government may go for the increase after the end of the Monsoon Session of the Parliament.

On June 25, the government had freed up state-subsidised petrol prices and hiked other fuels as high global oil prices and pressure to trim the budget deficit outweighed concerns about the political impact of the measures.

A panel of ministers increased prices of state-subsidised diesel, kerosene and cooking gas prices, to help reduce the fiscal deficit from the projected 5.5 per cent of 2010/11 GDP and free up revenues for other programmes.

After the freeing of petrol prices, oil companies were to review prices every month.

The UPA government is already under pressure from both the Opposition and its allies on the issue of price rise. A further hike in prices could offer further ammunition to the Opposition.

On Thursday, Finance Minister Pranab Mukherjee had called for a composite approach to deal with the issue.