M A I N   N E W S

Petrol price may go up by Rs 3 a litre
Tribune News Service

New Delhi, September 2
Concerned over the rising international crude oil prices touching $ 70 per barrel and its impact on Indian oil companies, the government is likely to give a go-ahead to the hike in petrol and diesel prices by Rs 3 per litre and LPG by Rs 20 per cylinder next week.

A Cabinet meeting chaired by Prime Minister Manmohan Singh today discussed the issue of raising oil prices though the final decision on hike was put off till the return of Petroleum Minister Mani Shankar Aiyar, who is scheduled to return on September 7 after his tour of Norway, Iceland and Bangladesh.

“Early next week yet another meeting (of the Cabinet) is scheduled (to consider fuel price hike),” Aiyar said from Oslo in a teleconference. He did not elaborate on the issue.

Officials in the Petroleum Ministry said that ministry has proposed to hike petrol and diesel by Rs 3 per litre each and LPG price by Rs 20 per cylinder. It has also proposed a cut in excise duty on petrol and diesel by Re 1 per litre each.

The average Indian crude basket price, which was $ 27.96 a barrel during 2003-04 and $ 39.21 a barrel during 2004-05, touched an all time high of $ 62.50 a barrel on August 31, this year.

At present, petrol is sold at a discount of Rs 7.45 a litre and diesel at Rs 5.15 per litre. LPG was sold at a loss of Rs 96 per cylinder and kerosene was sold at a discount of Rs 12.85 a litre.

Prime Minister Manmohan Singh had at a late night meeting yesterday reviewed the pressure that rising oil prices were putting on the economy and the public sector oil firms.