Shock! Petrol, diesel, LPG, kerosene prices shoot up

CA Shree Jain (Chartered Accountant) (1572 Points)

25 June 2010  

Petrol - Rs 3.73/litre; diesel - Rs 2/litre;
LPG - Rs 35/cylinder; kerosene - Rs 3/litre

Petrol will now cost Rs 3.73 per litre more, while diesel prices have been increased by Rs 2 a litre.

Also, your cooking gas cylinder will now cost Rs 35 more, while kerosene will be priced Rs 3 per litre more.

The government on Friday decontrolled petroleum prices to bring fuel costs in line with global oil rates after an Empowered Group of Ministers, headed by Finance Minister Pranab Mukherjee, met for the second time in less than three weeks to decide on raising fuel prices. Railway Minister Mamata Banerjee was absent again.

Announcing the hike in prices, oil secretary S Sundaresan said that the prices of petrol and diesel prices will be market-driven. He also said that the government had taken the decision as 'consumers can afford higher prices'.

Banerjee and Agriculture Minister Sharad Pawar had abstained from the first meeting of the eight-member EGoM on June 7 that was to decide if petrol and diesel prices can be freed from government control, along with hikes in domestic LPG and kerosene rates.

Their absence then was attributed to opposition to increase in rates of diesel and cooking fuel and the EGoM postponed a decision