petrol price is high

Cabinet approves fuel price hike; petrol likely to be dearer by Rs 3
Bureau New Delhi, June 04: The Cabinet Committee on Parliamentary Affairs met early Wednesday to discuss the hike in fuel prices. The CCPA is understood to have approved a hike of Rs 3 per litre in petrol prices, while the diesel prices are likely to head north by Rs 2 per litre. However, a formal announcement in this regard will be made sometime around noon. Reports suggested a proposal was put forward at the meet to hike petrol prices by Rs 3 and diesel prices by Rs 2 per litre. Further, a new distribution scheme for domestic LPG cylinders was also proposed under which a household will get eight cylinders per year at the current price and any cylinder above that will come at double price. While the CCPA is believed to have approved the hike in petrol and diesel prices, the committee’s stance on the new LPG cylinder distribution scheme is not yet known. Prime Minister Manmohan Singh is due to address the nation later in the day to explain why it has become necessary to raise fuel prices. The CCPA meet came in the wake of the relentless rise in international crude oil prices, which have touched levels as high as USD 135 per barrel. On Monday, the Prime Minister had indicated of an imminent fuel price hike when he said consumers cannot be fully insulated from the impact of rising global oil prices. With the surge in global oil prices leaving a Rs 2,25,040 crore revenue deficit with oil companies, Dr Singh had over the last few days held several rounds of consultations with senior ministers and UPA chairperson Sonia Gandhi on the issue. Prior to the CCPA meet, Petroleum Minister Murli Deora had been pushing for a Rs 10 a litre hike in petrol, Rs 5 per litre increase in diesel and Rs 50 per cylinder raise in LPG prices. He had also made it clear that the UPA government will not let the oil subsidy bill to rise any further.