Government mulling Rs. 3/litre diesel rate hike after Assembly polls

Posted By: Religare
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Government mulling Rs. 3/litre diesel rate hike
The Indian Petroleum Ministry has decided to increase the diesel prices by up to Rs. 3 a litre, immediately after the completion of the Assembly elections in five states next week.

A top Government Official quoted "Petroleum Ministry officials yesterday discussed with the Election Commission the issue of raising prices before Assembly election results are announced on May 13. The Election Commission is believed to have cleared the move."

An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee is likely to meet on 11 May 2011, to discuss the diesel price hike issue. At a similar note, Rs. 3-4 a litre hike in the price of petrol is also expected to be discussed in the upcoming meet.

In June 2010, the Indian Government took a revolutionary initiative to deregulate the petrol prices and allowed the oil companies to fix rates on the basis of market forces but it kept the diesel and LPG rates under its power.

Read more about: oil and gas, investment
Story first published: Thursday, May 5, 2011, 12:30 [IST]
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