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Diesel, petrol prices expected to be hiked next month

PTI 20 Aug 2012, 15:01:17 IST
New Delhi, Aug 20: The petroleum ministry and state oil firms plan to raise diesel and petrol prices next month as crude oil rose to a three-month high last week and diesel consumption has soared because of the weak monsoon and poor power supply, reports “The Economic Times'.

According to the report, Diesel is expected to be costly by 4-5 a litre and petrol rates could be raised by 3 a litre, as told by government and industry officials.

"Price hike is inevitable, but the timing and quantum of hike would be politically decided after the monsoon session," an official told ET, requesting anonymity.

The monsoon session of Parliament will end on September 7.

The report quoting officials  further says that the government may spare kerosene but raise cooking gas prices between 50 and 100 and restrict the number of cylinders per household in a year to minimise revenue loss on fuels, which is estimated over 165,000 crore for current fiscal year.

Rates of diesel, cooking gas and kerosene have been frozen for about 14 months.