The Government has connected the diesel price with the international crude prices. The Government has raised the petrol price by Rs. 3.50 per liter and diesel is dearer by Rs. 2.

Earlier, oil marketing Companies were busy making recoveries of Rs. 3.73 per liter on petrol, Rs. 17.92 on kerosene, Rs. 261.90 on LPG and Rs. 3.80 on diesel. Oil marketing Companies will have to face a loss of Rs. 1.50 and Rs.
15 on the sale of diesel and kerosene, respectively. The Companies will have to incur a loss of Rs. 227 on a cylinder of LPG.

This hike in the price is the outcome of Kirit Parikh Committee report. The Empowered-Group of Ministers on Regulation reviewed this report and implemented the recommendations. The Parikh Committee report has suggested the hike of Rs. 100 on a cylinder of LPG and Rs. 6 per liter on Kerosene. The Empowered group was presided by the Finance Mister, Pranab Mukherjee.

However, Petroleum Minister, Murli Deora, has assured that a periodical revision of prices should be expected depending upon the changes in the international crude prices.

“Even though the Government will move slowly in the case of diesel, the essential decision has been taken in principle that the price would be market driven”, said Mr. Kirit Parikh.