Maharashtra spikes diesel price by 5 per cent

Mumbai, Nov 24: Two days after petrol and diesel outlets in Maharashtra called off their three-day strike demanding reduction in the fuel prices, the State government spiked the diesel price by five per cent per litre but was silent on petrol price.

The decision, taken in a meeting of the Council of Ministers held here today under Chief Minister Vilasrao Deshmukh, would become effective from December 1 , 2006.

While the per litre diesel price in the corporation areas of Mumbai, Navi Mumbai and adjoining Thane district would come down to 28 per cent from the earlier 33 per cent, the decrease in the rest of Maharashtra, also effective from December one, will be 25 per cent from the earlier 30 per cent, a government statement said after the Cabinet meeting.

Diesel will be available at Rs 36.67 per litre in the civic areas of Mumbai, Navi Mumbai and Thane disrict with effect from December 1, 2006 as against Rs 39.10 per litre now, while in the rest of the state it will cost Rs 35.88 per litre against Rs 38.32, the satement said, claiming that the price of diesel from the next month will be lesser than the one prevailing in the neighbouring states.

The petrol and diesel association has been demanding prices of the fuel at par with the adjoining states. Union Petroleum Minister Murli Deora, who is from Maharasthra, had supported the association's demand.

The government decision has come in the wake of two meetings leaders of the association held with the Chief Minister and Finance Minister Jayant Patil.

The government said when the Centre increased petrol price by Rs four per litre in June, it had reduced it by one per cent.

UNI