Government hikes diesel price by Rs.five a litre (Lead)

September 13th, 2012 - 10:35 pm ICT by IANS  

Manmohan Singh New Delhi, Sep 13 (IANS) The government Thursday announced a hike in diesel price by Rs.five a litre and restricted availability of cooking gas cylinders per family to six per year.

The decisions, taken by the Cabinet Committee on Political Affairs (CCPA) at a meeting presided over by Prime Minister Manmohan Singh, come into effect midnight Thursday.

The panel, comprising of ministers from allies of the United Progressive Alliance (UPA), was expected to meet on Tuesday evening, but the meeting was postponed and finally held here Thursday.

Diesel and cooking fuel prices have not been revised since June 2011 even as oil firms sell deregulated petrol at a price which is Rs.6 per litre less than its actual cost.

State-owned oil firms are losing around Rs.550 crore per day on the sale of regulated diesel and cooking fuels and around Rs.16 crore per day on petrol.

Oil Marketing Companies (OMCS) have been selling diesel at a loss of Rs.19.26 per litre, kerosene at a loss of Rs.34.34 per litre and domestic LPG at a loss of Rs.347 per 14.2-kg cylinder.

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