Hike in Petrol price

Govt decontrols fuel; hikes petrol, diesel prices

NEW DELHI: 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.


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 said here.



The decision follows a ministerial panel meeting on freeing up petrol prices and cutting subsidies on diesel, kerosene and cooking gas, to help rein in the fiscal deficit, which is projected at 5.5 percent of the gross domestic product in 2010/11 and free up revenues for other programmes.



The move will help boost profits of state-run oil firms that have been losing revenue from government-set lower prices.