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Petrol price to go up next week

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THE Indian government may hike petrol, diesel, cooking gas and kerosene prices simultaneously as early as next week, with Oil Minister S Jaipal Reddy on Friday saying “difficult and painful” decisions need to be taken.

“There are no immediate proposals to raise prices of various oil products including petrol,” Reddy told reporters.

Though he did not specify when the hike may take place, indications are it could be done after the Cabinet meets next week, reports Press Trust of India.

The Ministry is wary that if oil firms are allowed to raise just petrol prices on Friday or Saturday, the political opposition to the unpopular decision may force the hands of the Cabinet into not hiking diesel, Liquefied Petroleum Gas (LPG) and kerosene rates.

On the political opposition to raising fuel rates, Reddy said fuel pricing was a classic case of “politics defeating economics”.

Reddy said he has moved a note for the consideration of the Cabinet Committee on Political Affairs (CCPA) explaining the precarious situation facing the oil sector.  – Bernama