Speculation rife about fuel price hike by month-end
06 Aug 2010
The ministry of petroleum and natural gas is undecided on a petrol price hike by the month-end, reports CNBC-TV18, quoting sources. The report says government will not intervene with the decision of oil marketing companies on a petrol price hike.
The report comes amid other unconfirmed reports that the government may hike petrol prices later this month, as soon as the monsoon session of parliament ends. The price is expected to be in the range of Re1.
Though the government and the Reserve Bank of India (RBI) are working in tandem to bring down inflation, the pressure on prices still continues.
Recently, the petrol price was increased by Rs3.5 per litre, diesel by Rs2 per litre, and kerosene by Rs3 per litre.
The government had also decided to free petrol prices from state control, although the prices of diesel, kerosene and cooking gas remain under government control.
Sources added that the government is also not worried about the current under-recovery in fuel by the state-owned oil marketing companies.
