The government on Wednesday increased the price of petrol by Rs 5 a litre and that of diesel by Rs 3 a litre. The price of an LPG too has gone up by Rs 50 a cylinder.
Petroleum Minister Murli Deora has also proposed double price for extra cooking gas cylinders. He has also proposed a new distribution scheme for LPG cylinders. Only 8 cylinders will be allowed at the current rates. All extra cylinders will cost twice the amount.
The huge subsidy losses faced by the public sector oil companies due to galloping global crude prices, has led the government to impose the hike.
Prime Minister Manmohan Singh will address the nation at 8:30 pm on Wednesday night to explain the reason for the hike in fuel prices.
With political parties, including the Left, opposing hike in fuel prices, the prime minister had warned on Monday that government is not in a position to fully insulate the consumer from the impact of rising oil prices.
"We cannot allow the subsidy bill to rise any further. Nor do we have the margin to fully insulate the consumer from the impact of world commodity and oil price inflation," he had said.
Source: rediff.com
