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HindustanTimes Sun,26 Oct 2014

Rs 4 petrol hike soon; diesel, LPG may follow

HT Correspondent, Hindustan Times  New Delhi, September 04, 2012
First Published: 19:54 IST(4/9/2012) | Last Updated: 01:48 IST(5/9/2012)

The government is planning an across-the-board increase in the prices of auto and kitchen fuels.

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A Rs. 4-5-per-litre hike in petrol prices is expected as soon as the monsoon session of Parliament ends on September 7.

A Rs. 5-per-litre hike in diesel, an increase of Rs. 75-100 per LPG cylinder and a Rs. 2-per-litre hike in kerosene prices may follow, as the finance ministry has refused to give a blanket cover for the under-recoveries being incurred by state-owned oil firms.

Under-recoveries are losses incurred by oil companies on selling fuels below cost price. The projected under-recoveries for the whole of 2012 is Rs. 1,90,000 crore, more than the country’s annual defence budget, or three times the NREGA budget.


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