India’s adventure with rising fuel prices is likely to get a new chapter, as prices are expected to go up once again. According to reports on the internet, while the price of petrol may be hiked by Rs 3 a litre, the diesel price is expected to be hiked by Rs 4-5 a litre.
Government sources have said that a hike for prices was necessary as the price of crude oil hit a new three-month high last week. According to a CRISIL report, State oil firms (IOC, BPCl and HPCL) were also putting pressure on the government to act as they had lost over Rs 40,500 crore in a single quarter.
Diesel prices were likely to be hiked due to poor rainfall and shortfall in power supply, which had led to the use of the subsidised fuel even as a replacement for natural gas. Speaking on the diesel price hike, C Rangarajan, Prime Minister's Economic Advisory Council Chairman, said it was likely to happen in the next two months and added that PMEAC's role was only to emphasise what needs to be done and the decision had to be taken by the government.
