LPG,petrol and diesel prices up

By Our Economy Bureau | 05 Nov 2004

New Delhi: The government has raised the prices of LPG, petrol and diesel. The price of LPG will be increased by Rs20 per cylinder with immediate effect and subsequently by Rs5 each month. The new prices of petrol and diesel are to be worked out by the oil marketing companies based on a formula worked out by the cabinet committee on economic affairs (CCEA).

The price of kerosene has been left untouched.

Talking to the media yesterday, the petroleum minister, Mani Shankar Aiyar, said that the prices of petrol would be linked to its import parity prices while the increase in diesel prices would be pegged at half of its import parity. . Accordingly, prices of petrol are set to go up by about Rs2.20 per litre while diesel prices are to be dearer by about Rs2.10 per litre. . In a detailed presentation to the CCEA on Wednesday, the petroleum minister had advocated the need for the government to ensure that petrol products'' availability was not affected and the rising under recoveries were brought down to realistic levels.

Petrol and diesel prices had not been hiked for over three months, while LPG prices were last raised on June 15. Till now, petrol was being sold at Rs2.20 per litre below the imported cost while diesel was priced at Rs4.15 per litre below cost.

LPG was underpriced by Rs158 per cylinder and kerosene, whose prices have not changed in the past 30 months, is being sold at Rs11.76 per litre lower than the imported cost.