The Union Government, today, has hiked the retail prices of petrol and diesel by Rs 5 and Rs 3 per litre respectively and that of LPG by Rs 50 a cylinder. However, the price of kerosene was not increased. The hike will be effective from the midnight.
Petrol, which is currently retailed at Rs 45.5 a litre in Delhi, has been hiked by 11 per cent to Rs 50.5. Diesel experienced a 9.5 per cent hike in prices as it is increased to Rs 34.5 from Rs 31.5.
The Union Cabinet chaired by Prime Minister Manmohan Singh also reduced the customs duty on crude oil from 5 per cent to nil, and on petroleum and diesel from 7.5 per cent to 2.5 per cent. The customs duty on other petroleum products has been reduced from 10 per cent to 5 per cent. Inflation following the fuel price hike may rise by 0.5 to 0.6 per cent.
Speaking to media, Murli Deora, minister of petroleum and natural gas, said: These steps are taken to offset the surging global oil prices that had put the national oil companies under acute pressure. The price hike will help oil companies to earn Rs 21,123 crore more.”