Indian Government raised diesel, cooking gas and kerosene oil prices for the first time in a year to reduce losses.
Diesel price hike by Rs 3 per litre, kerosene oil by Rs 2 per litre and LPG gas by Rs 50 for every 14.2 KG cylinder and slashed 5% customs and excise duties on crude oil, excise duty on diesel was cut from Rs. 4.60 per litre to Rs. 2 a liter.
The increase in the price decided at a meeting of empowered group of ministers headed by finance minister Mr. Pranab Mukherjee.
Diesel price in Delhi will be hiked by Rs. 3.40 per litre to Rs. 41.15 a litre with effect from midnight. Rates will vary at cities due to differential rates of VAT/sales tax.
A 14.2-kg domestic LPG cylinder now costs Rs. Rs. 345.35, while kerosene is priced at Rs. 12.32 per litre in Delhi.
LPG cooking gas will still be cheaper compared to that in the neighbouring countries. LPG in Pakistan costs Rs. 611.40 per cylinder, Rs. 484 in Bangladesh, Rs. 878.90 in Sri Lanka and Rs. 821 in Nepal.
Similarly, the Rs. 2 per litre hike in kerosene price, which comes on the back of last year’s Rs. 3 per litre raise, would raise rates in Delhi to Rs. 14.32 per litre, still cheaper than Rs. 43.95 in Pakistan, Rs. 27.81 in Bangladesh, Rs. 25.12 in Sri Lanka and Rs. 42.61 of Nepal.