Petrol Diesel prices up.

India Raises Petrol prices yaar..
lets see first the current petrol/ diesel rates in the country.
An excerpt from the Hindu

"Petrol in Delhi will now cost Rs. 45. 52 against Rs. 43.52. In Kolkata it will be Rs. 48.95 against Rs. 46.86, in Mumbai Rs. 50.51 against Rs. 48.38 and in Chennai it will be Rs. 49.61 against Rs. 47.44.

Diesel in Delhi will now cost Rs. 31.76 against Rs. 30.76.

In Kolkata it will be Rs. 33.92 against Rs. 32.87, in Mumbai Rs. 36.08 against Rs. 34.94 and in Chennai Rs. 34.40 against Rs. 33.30."

not much of a difference.. but this hike is coming at the wake of spiralling crude oil prices.. the crude oil price touched $100 a barrel on Jan 2nd.. a whopping $100. currently it has settled to somewhere in the early $90s.

How does this price increase affect the common man? the price increase is just marginal. Now the Left parties oppose to a Two rupee hike in the price of petrol, as if two rupee is a matter of life and death for the common bike/car owning middle class people. Its just a sacrifice people can very well afford to make, but the left feels that armageddon has neared. It's been feeling that way since India's independence, but thats a different story;)

lets see what Murli Deora has to comment on the issue- “We have tried to ensure that the common man does not suffer. This is just a marginal hike to save the oil marketing companies (OMCs) from bankruptcy. We appeal to the people to cooperate with us. The hike will come into effect from midnight on Thursday night,” Petroleum and Natural Gas Minister Murli Deora said at a press conference.

Mr. Deora said the CCPA also decided to raise the quantum of oil bonds to be issued to state-run oil retailers to partly compensate them for selling auto and cooking fuel below the cost.

At present, 42.7 per cent of the under-realisation on petrol, diesel, LPG and kerosene was met by the government through issuance of oil bonds. The percentage now was 56-57 per cent, Petroleum Secretary M.S. Srinivasan said.

The government companies would earn around Rs. 840 crore in the next six weeks of this financial year.

The Rs. 2 a litre increase in petrol would give Rs. 180 crore additional revenue a month to the public sector oil companies. In the case of diesel, it would be Rs. 360 crore a month.

Petrol and diesel prices were last raised in June 2006 and LPG prices by Rs. 20 a cylinder in November 2004. Kerosene prices have not been changed since 2002.

So thats were the issue stands.. lets see later if more developments take place