New Delhi, June 25: The central 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 midnight tonight 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.
ith the decontrolling of petrol prices, it will now be linked to the market price of crude. Whenever international crude prices go up, users will have to shell out more for petrol. Also, the government will no longer subsidize petrol and diesel.
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.
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 government currently gives a subsidy of Rs 262 per LPG cylinder.
As per the latest decision, petrol and diesel prices per litre in different cities of the country - in Mumbai petrol would cost Rs 52.50 and diesel would cost Rs 39.88, Chennai Rs 52 for petrol and Rs 54 for premium petrol, in Delhi, petrol would cost Rs 47.93 and diesel Rs. 38.10, in Kolkata petrol would cost Rs 51.65 and diesel Rs 37.99, in Hyderabad petrol would cost Rs 53.24 and diesel Rs 38.96.
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.

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