The government on Wednesday by passed the cabinet to raise petrol prices by Rs. 4 per litre and diesel rates by Rs. 2 a litre with effect from Wednesday midnight. However the government would not raise the domestic LPG and kerosene prices though the public sector oil companies are losing Rs. 92.96 per cylinder and Rs. 15.26 a litre respectively.
After the increase, petrol in Delhi will cost Rs. 44.62 a litre and diesel Rs. 32.86 a litre. The petroleum secretary, Mr. R S Pandey said this was an “ad-hoc” increase in fuel prices aimed at limiting the Rs. 170 crore per day loss Indian Oil, Bharat Petroleum and Hindustan Petroleum incurred on sale of petrol, diesel, domestic LPG and kerosene.
The rise in prices of the fuel will make goods dearer, resulting in an increase of 7% to 8% in freight charges and 10% in the prices of vegetables and grocery.