Petrol Price hiked by Rs 4 and Diesel Rs 2 from Today

Petrol Price hiked by Rs 4 and Diesel Rs 2 from Today

The first time after UPA 2 formed government the petrol and diesel price are raised.

Petrol and diesel will be raised by Rs 4 per litre and Rs 2 per litre respectively from Thursday 12.00 am midnight, Petroleum minister Murli Deora said, in a move intended to help state run oil marketing companies to reduce the loss because of increased global crude prices.

Even thought the price of petrol and diesel is increased the cooking gas and kerosene price not been increased. But truckers and transporters associations announced that they would pass on the burden by raising freight rates.


An estimated subsidy of Rs 30,000 crore will be borne entirely by the government for the cooking gas and kerosene. Provisions would be made in the budget that is to be presented on July 06th, to cover the loss on account of LPG and kerosene, Petroleum Minister Murli Deora said.

The price rise decision by petroleum ministry was taken without consulting the Cabinet or with the UPA partners. Oil minister Murli Deora announced the price rise after consulting PM Man Mohan Singh and the Congress party leadership. The reason for not consulting with cabinet and UPA allies would be the congress have huge majority in current UPA government and allies have less power to shake the government when compare to previous UPA government.


Murli Deora said to reporters “the hike in fuel prices was necessary to control the losses of state-owned oil companies -Indian Oil Corporation, Hindustan Petroleum Corp and Bharat Petroleum corporation are losing Rs 6 per litre on petrol and Rs 3.62 per litre on diesel”.