The government on Friday hiked the prices of LPG by Rs 50 per cylinder, diesel by Rs 3 a litre and kerosene by Rs 2 a litre, a hike that was opposed immediately by the Opposition and ruling allies like Ms Mamata Banerjee of the Trinamul Congress.
The impact will be greater in Andhra Pradesh due to local taxes. The price of LPG cylinder will now be at least Rs 394.30 according to Hindustan Petroleum sources (old: Rs 342.30).
The price of diesel is expected to be around Rs 45 (old price Rs 41.33); It was still being worked out at midnight. Kerosene will cost Rs 15 (old price Rs 13) per litre.
There will be a difference of up to Rs 2 in the price of LPG in the districts. The state is currently bearing a subsidy of Rs 25 per cylinder.
The hike in diesel prices will impose an additional burden of Rs 150 crore on the RTC, which pays Rs 2,150 crore for 50 crore litres of diesel for its 21,000-strong fleet. The transport minister, Mr Botsa Satyanarayana, said the government will take a decision on whether to absorb the burden or to hike ticket prices after a meeting to be chaired by the Chief Minister.
The Centre cut customs duty on crude oil and excise duty on diesel to soften the hike necessitated by the surge in international crude oil prices. Due to the cuts in duties, the exchequer will lose Rs 49,000 crore a year.
The decision was taken by the empowered group of ministers (EGoM) on petroleum prices headed by the finance minister, Mr Pranab Mukherjee. Agencies