New Delhi, June 4: The Central Government on Wednesday upped the price of petrol by Rs 5 a litre and that of diesel by Rs 3 a litre. The price of a Liquefied Petroleum Gas (LPG) also has been increased by Rs 50 a cylinder. There will be no increase in the price of kerosene.
The prices will be applicable from midnight today .
The decision was taken after the meeting of the Cabinet Committee on Political Affairs (CCPA) presided over by Prime Minister Dr. Manmohan Singh.
Petroleum Minister Murli Deora in New Delhi informed about the inability of Oil Marketing Companies (OMCs) to continue bearing losses due to soaring global fuel prices. The under recovery of OMCs is expected to be Rs 2,45,305 crore during the year 2008-2009 due to sale of petrol, diesel, domestic LPG and PDS kerosene in 2008-09 in absence of any price hike or duty cut.
Meanwhile, excise duty on petrol has been slashed by Rs 1 a litre . Custom duty on crude oil has been abolished.
Prime Minister Dr Manmohan Singh will address the nation explaining the reason for the fuel price hike at 8:30 p.m. today.
This is the second price hike in a period of four months .It was last increased on February 14.