Petrol, diesel, LPG prices up

The Group of Ministers on Friday raised the prices of Petrol, diesel, kerosene and liquefied Petroleum gas (LPG) cylinder weighing 14.5 in a bid to deregulate their prices. The deregulation of the prices of Petroleum prices is intended to connect them with the market price of the crude. The meeting was presided over by Finance Minister Pranab Mukherjee.

 For the present, the prices of diesel would go up by Rs 2 and that of Petrol by about Rs. 3.50, stated Secretary S Sunderesan of the Union Ministry of Petroleum. He told newspersons here on Friday afternoon that the hike is necessary to help the oil marketing companies.

 ''Had we not decontolled the prices now, the under recoveries of the companies for Petrol would have been Rs 7,000 cr. and for diesel Rs 23,000 cr. for the whole year,'' Sunderasan said. To media persons's queries, he said in Mumbai the cost of unleaded Petrol would be Rs 52.50 and diesel Rs 39.88p after the hike.

In Chennai Petrol will cost Rs 52 and premium Petrol Rs 54;

In Delhi Petrol will be Rs 47.93 and diesel 38.10

In Kolkata Petrol will be Rs 51.65 and diesel Rs 37.99;

In Hyderabad Petrol will cost Rs 53.24 and diesel Rs 38.96p.

  Suneresan said for an average car user the Petrol hike would add a burden of Rs 150 per month while for a motorcycle user the additional burden would be Rs 30-35 per month.

Kerosene prices, untouched since 2002, have been increased by Rs 3 while the cost of an LPG cylinder would go up by Rs 35 per cylinder. The government currently gives a subsidy of Rs 262 per cylinder, he added.

The Cabinet decision on the hike in Petroleum products was made to match the international crude prices. Similarly, prices of Petrol and diesel will come down whenever international crude prices fall. The GoM has decided against subsidizing Petrol and diesel in future.

Interestingly, Railway Minister Mamata Banerjee, who should have objected to the hike as it has a direct bearing on her ministry, was not present at the meeting. She had also skipped the June 8 meeting of the ministers. NCP leader and Agriculture Minister Sharad Pawar who expressed his disapproval initially, gave in to collective decision later. He had also skipped the last GoM meeting.