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Fuel prices raise in India
June, 05th 2008

In the highest ever price raise, the Indian government on Wednesday announced a hike in fuel prices to combat spurt in global oil prices, according to the Press Trust of India.

The measures include 5 rupees a liter increase in petrol, 3 rupees on diesel and 50 rupees per LPG cylinder together with customs and excise duty cuts. The rupee was closed at 42.63 on Wednesday against the dollar.

"We were left with no option," Petroleum Minister Murli Deora told a press after a meeting of the Cabinet.

State-run Indian Oil companies, Bharat Petroleum and Hindustan Petroleum would have suffered a revenue loss of 2453 billion rupees (58 billion U.S. dollars) this fiscal without these measures, he said, adding "due to the relentless increase in international oil prices, it has now become necessary for the consumers to shoulder a small part of the increased burden, through a marginal hike in prices."

Petrol and diesel prices were last raised in February and the new prices will come into effect from midnight Wednesday.

The government also announced an across the board 5 percent cut in customs duties, bringing rates on crude to zero, on petrol and diesel to 2.5 percent and on other products like aviation turbine fuel (ATF) and naphtha for non-fertilizer use to 5 percent.

 
 
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