Petrol price to hike from 16th June again

Government Oil Companies may hike petrol prices by 50 paise per liter from 16th of June 2011. Despite of heavy hike of Rs. 5/liter, companies are bearing loss. According to an official from Indian Oil Corporation, Prices will go up by 0.50 paise from 16th June if no political pressure will be there. 

Already, companies have hiked the petrol price by Rs. 5 on May 15th 2011. According to Official, due to hike in crude oil prices at Global level , companies are still bearing a loss of Rs.4.58/liter.

Also the meeting of the Group of Ministers to discuss regarding the hike of price of cooking gas and diesel has been postponed today.

EGom to talk about hike in Diesel, LPG, Kerosene Prices

Empowered Group of Ministers on fuel pricing will be having a meeting in Delhi on Thursday, regarding hike in Diesel, Kerosene and LPG (Cooking Gas). However, the intentions have been cleared by Petroleum Ministry, as they said that they will be putting up a proposal for a substantial growth in Diesel Prices before the Group of Ministers.

Reasons behind hike in fuel prices:

The reason behind the hike in price is loss of Rs 78,000 Crore, faced by the oil marketing firms in 2010-11 due to sale of diesel and cooking gas at lower cost than cost price. However, 41000 Crores has been compensated by the Indian Government and GAIL and ONGC were asked to bear the remaining loss of30, 286.75 Crores.

Amount (in Rs.)	Reasons
78,000 Crores	Loss faced by the oil marketing firms due to sell of diesel at a lesser price than actual price.
41,000 Crores	Loss has been compensated by Government
30,286.75	Has been beard by GAIL and ONGC

Effects of rise in price of Diesel:

There will be direct impact of hike in price of diesel as it is major transportation fuel, and will lead to an increase in price of essential commodities.

• Rise in transport charges will lead to rise of price of vegetable and other eatables.  
• Rise in prices of all those commodities which are being transported from other states. 

Expected Rise in Prices of Diesel and Cooking Gas:

Price Rise	Product (Fuel)
Rs. 2-3	Diesel
Rs. 35	Cooking Gas (LPG)