New Delhi, Sep 7 (): The Indian government is not ready to spare its citizens by giving once again the same trauma as petrol prices are likely to be increased by Rs 5 per litre from Friday, Sep 7, which will be the last day for Parliament monsoon session.
The government has already decided and made the announcement regarding hike in petrol and other commodity prices after the monsoon session. The increase in fuel will be faced by the vehicle users throughout the country on Friday.
After the increase in crude oil prices in the global markets, it is believed that the oil companies are incurring a loss of Rs 550 crore per day. Therefore the government was left with no other option and was forced to accept the demands of the oil companies to increase the petrol price. It is also likely to announce the increase of other fuel products including diesel soon.
The present strategy shows that oil firms are expected to witness a huge loss of Rs 2 crore in the current fiscal year. It is presently facing a loss of Rs 1.37/litre on petrol and Rs 19.26/litre on diesel. According to sources, the prices of diesel and the LPG have not been increased for more than a year even after the cost of production has shot up by Rs 28 percent. Petrol price has been hiked four times this year.
In the month of May this year, the price in petrol was hiked by Rs 7.54 a litre and was gradually rolled back by Rs 2.02 a litre in a week following a huge outcry by several political parties throughout the country who took a protest to the street against the ruling government.
Sources said by emphasizing the certainty of increasing the fuel prices, the government is also worried by the increasing diesel consumption in the country which has grown sixteen percent in the first three months of the current year.