Govt ups auto, cooking fuel prices sharply; Oppn for rollback

New Delhi, June 25 (PTI) In a politically sensitive move,
the Indian government Friday hiked prices of petrol by Rs 3.50
a litre and diesel by Rs 2 a litre, raised LPG by Rs 35 a
cylinder and the poor man's cooking fuel kerosene by Rs 3 a
litre.
Petrol prices will be decontrolled from Friday midnight
leading to Rs 3.50 a litre hike in rates in Delhi and diesel
rates will be linked to market prices in stages, Oil Secretary
S Sundareshan said after a meeting of an Empowered Group of
Ministers chaired by Finance Minister Pranab Mukherjee.
"For the present, an increase of Rs 2 per litre in diesel
prices has been approved," he said.
Prior to the hike, petrol in Delhi cost Rs 47.93 a litre
and diesel Rs 38.10 per litre.
The government is decontrolling petrol prices after a gap
of six years and together with increase in diesel, LPG and
kerosene rates, the move would lead to a 0.9 percentage points
surge in inflation.
Opposition parties launched a scathing attack on the
government for the unpopular decision, saying it would hit
hard the masses already reeling under soaring prices.
Sources said Nationalist Congess Party supremo and
Agriculture Minister Sharad Pawar told the EGoM that the
decisions should not be rolled back.
However, some allies, including Trinamool Congress leader
and Union Cabinet Minister Mamata Banerjee, who stayed away
from the EGoM meeting, demanded roll-back of the hike that
would lead to an inflation spiral.
"The important thing is that the government will continue
to subsidise common man's cooking fuels - LPG and kerosene,"
Indian Petroleum Minister Murli Deora said while emphatically
stating that none of the members present at the EGoM gave a
dissenting note.
Sources said Dravida Munnettra Kazhagam leader M K
Alagiri, whose party voiced opposition to the move after the
decision, had brought a paper outlining his party's
reservations on the move but did not circulate it.
"I know Banerjee is in town but I don't know why did not
attending the meeting," Deora said. "All others were very
cooperative. (DMK leader and Fertilizer Minister) M K Alagiri
and (Agriculture Minister) Sharad Pawar were in agreement with
these decisions."
Giving details of the decision, Sundareshan said that
there was, however, no move to end subsidy on LPG and kerosene
and added that diesel that is now being sold at a loss of Rs
3.80 per litre would also be eventually priced at market rate.
The hike in petrol and diesel prices is the third this
year. Rates where first hiked on February 27 when Finance
Minister raised duties on the two fuel and prices were again
revised on April 1 on account of introduction of Euro-IV
compliant motor fuels. MORE PTI ANZ
KAB


The information contained in this electronic message and any attachments to this
message are intended for the exclusive
use of the addressee(s) and may contain proprietary, confidential or privileged
information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please
notify the sender immediately and destroy
all copies of this message and any attachments contained in it.


Delete & Prev | Delete & Next