Centre deregulates fuel prices

New Delhi, June 25 (ANI): Petrol and diesel prices across the country increased on Friday, as the Union Government decided to deregulate fuel prices.

With this, petrol and diesel prices have been de-controlled and will be linked to the market price of crude.

The Centre took the decision on the recommendations of an Empowered Group of Ministers (EGoM).

With today's decision, whenever international crude prices go up, users will have to shell out more for petrol and diesel. Similarly, prices of petrol and diesel will come down whenever international crude prices come down.

Also, the government will no longer subsidize petrol and diesel.

As the government took out its control over fuel, diesel prices have been increased by Rs two and the petrol prices would be hiked around Rs 3.5.

Kerosene prices, untouched since 2002, have been hiked by Rs three, while the cost of Liquid Petroleum Gas (LPG) cylinder would go up by Rs 35 per cylinder.

The government currently gives a subsidy of Rs 262 per cylinder.

Petroleum Secretary S Sunderesan, said the under recoveries on the part of oil marketing companies for petrol would have been 7,000 cr. and for diesel 23,000 cr. for the whole year if their prices would not have been decontrolled.

Petrol and diesel prices per liter at different cities of the country - in Mumbai petrol would cost Rs52.50 and diesel would cost Rs 39.88, Chennai Rs 52 for petrol and Rs 54 for premium petrol, in Delhi, petrol would cost Rs 47.93 and diesel Rs. 38.10, in Kolkata petrol would cost Rs 51.65 and diesel Rs 37.99, in Hyderabad petrol would cost Rs 53.24 and diesel Rs 38.96. (ANI)