Saturday, 15 September 2012

Oil companies hike premium petrol and diesel rates by Rs 6.36 and Rs 19.55 per litre




Days after the steepest diesel price hike, oil companies today raised premium or branded petrol and diesel rates by Rs 6.36 and Rs 19.55 per litre, respectively.

The government, on Thursday, had raised diesel price by Rs 5.63 per litre and allowed the oil companies to price premium or branded petrol and diesel at market prices.Subsequently, the premium or branded petrol in Delhi is being sold at Rs 77.58 per litre from today as against Rs 71.22 previously.Similarly, premium or branded diesel is being sold at Rs 65.81 per litre as against Rs 46.26 previously, industry sources said.

India raised the price of heavily subsidised diesel on Thursday to rein in its fiscal deficit and counter the threat of becoming the first of the big emerging economies to be downgraded to junk.The long-awaited decision follows intense pressure on Prime Minister Manmohan Singh to plug one of the biggest drains on the treasury. It was greeted with elation by investors and raised expectations of more reforms to reverse an investment slump and revive a sluggish economy.

But the fuel price increase caused an instant political backlash. A leading partner in the ruling coalition announced a protest march at the weekend and the main opposition party called the move "financial terror".Protests earlier this year over petrol price and railway fare hikes prompted Singh to partially roll them back.

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