The government today announced a hike in petrol prices by Rs five a litre or 11 per cent, diesel by Rs 3 a litre or 9.44 per cent and LPG will be dearer by Rs 50 or 17 per cent, with effect from midnight tonight. Currently, the petrol and diesel are sold in Delhi at Rs 45.52 and Rs 31.76 a litre respectively. An LPG cylinder costs Rs 294.75. The hike, probably the biggest in at least this decade, has been prompted as global crude soared to a record high of 135 dollars a barrel recently. However, the PDS kerosene price has been left untouched.
Meanwhile, Petroleum Secretary M S Srinivasan said here that the increase in the retail selling prices of diesel may fuel the inflation by 0.5-0.75 per cent in the coming weeks. Historical trend suggests that a hike of Rs 2 a litre for petrol and Re 1 per litre in case of diesel pushes up the WPI more than a point in subsequent two weeks.