Prepare to pay more for your transport and cooking gas. Then wait to see how the hike inflates the prices of other goods and services.
Effective Friday midnight, the price of petrol will go up by Rs 3.50 per litre, while that of diesel will rise by Rs 2 per litre.
Households will also have to shell out an additional Rs 35 for every LPG cylinder and Rs 3 per litre for kerosene.
The government has finally bitten the bullet in implement- ing the long-awaited deregula- tion of state-controlled prices of petrol. It has removed gov- ernment control and will allow oil companies to fix petrol prices on the basis of market forces.
Diesel prices will also get deregulated, but this will be implemented in phases.
Kerosene and LPG prices, however, will continue to remain government-determined.But there could be more.
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Source: ibnlive
By handing over the power to calibrate local prices with global crude movements to oil marketing companies, the empowered group of ministers on Friday institutionalised the process of price revisions.
That means price hikes could come in frequent little doses -- fortnightly or monthly -- rather than rare one-shot increases.
"The Centre was left with no choice but to take a decision to free petrol and diesel prices in the larger interest of the nation," petroleum minister Murli Deora said. He added that kerosene and LPG subsidies would cost the government Rs 53,000 crore in 2010-11.
High fuel costs are expected to fan the prices of most goods, which in turn could push the inflation rate -- currently at 10.2 per cent -- higher
Source: Hindustan Times Inflation: Cost Of Fuel, LPG And Kerosene Hiked, A Life Far More Expensive
