Petrol a deregulated commodity, says FM on price hike

New Delhi, May 23: Finance Minister

said the decision to increase petrol price by massive Rs 7.54 a litre was taken by oil marketing companies as the government had deregulated the fuel nearly two years ago.

"The decision has been taken. Petrol is a deregulated commodity," Mukherjee told reporters in response to queries on the steep hike in petrol prices.

State-owned oil marketing companies today announced the steepest ever increase in petrol prices. With the hike, the prices would become dearer by as much as Rs 7.54 per litre from midnight of May 23. The government had decontrolled petrol price in Jun, 2010.

Prices were last increased on Nov 4, 2011. The latest increase comes in the backdrop of rupee crossing the 56-mark against the US dollar.

PTI