Petrol and diesel will cost up to Rs 3.50 per litre more, households will have to pay an additional Rs 35 per cylinder and poor man’s cooking medium kerosene will be dearer by Rs 3 a litre from today. The prices are going to rise. In Delhi prices are going to be above Rs 50.
The decisions, taken by the EGoM headed by Finance Minister Pranab Mukherejee, were timed appropriately to take advantage of relatively lower global crude prices, which are hovering around USD 77 a barrel.
This would also help cut down on the government’s huge subsidy bills, as also relieve the oil marketing PSUs of staggering burden on account of selling these fuels much below the market prices.
The decision follows a ministerial panel meeting on freeing up petrol prices and cutting subsidies on diesel, kerosene and cooking gas, to help rein in the fiscal deficit, which is projected at 5.5 percent of the gross domestic product in 2010/11 and free up revenues for other programmes.
Crude oil is imported, a import duty is applied on this. Then all of us paying excise duty and sales tax for the petrol. Over and above all petroliem companies pay big divident to the governemt. If from all the money they collect as above, if some portion of it is reduced, how you can we say it is subsidy.