Govt may hike petrol price by Re 1 soon

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Petrol pump
New Delhi, Aug 6: India may face another inflation as Oil ministry hinted that government is planning to increase the petrol price by 1 Rs by the end of Aug 2010.

According the CNN-IBN, as the international crude oil prices nearing a three-month high at per barrel, the government may go for the hike after the end of the Monsoon Session of the Parliament.

The government on Jun 25 released state-subsidized petrol prices and hiked other fuels as high global oil prices and pressure to trim the budget deficit outweighed concerns about the political impact of the measures.

A panel of ministers increased prices of state-subsidized diesel, kerosene and cooking gas prices, to help reduce the fiscal deficit.

According to CNN-IBN, after the freeing of petrol prices, oil companies were to review prices every month.

Opposition parties' pressures are already leaning on UPA government over price rise and another price hike could offer further fuel to the Opposition to yell on the government.

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