Petrol price hike to fuel inflation

Petrol price hike to fuel inflationState-run fuel retailers will increase the cost of petrol by Rs 2.84 per litre in most parts of the country, or approximately 5% from today, in reaction to rising crude oil prices in the worldwide market.

Petrol is likely to cost approximately Rs 63 per litre in Mumbai from Saturday midnight, as per the oil company officials.

The administration had stated that it will pace in to freeze the right established to petroleum companies to incline prices as they wanted. The oil companies have as well enhanced aircraft fuel costs by 2% or around Rs 1 per litre.

Coming as it does hardly a month after an Rs 3 per litre gain, and amid sky-rocketing food prices, this will place increased force on billfolds as the nation battles the fullest inflation of any better Asian economic system. The rise is likely to have a 1-2% impact on air ticket rates.

Sources at each of the three companies stated Bharat Petroleum would set up the petrol price by Rs 2.53 a litre, Hindustan Petroleum by Rs 2.54, and Indian Oil by Rs 2.50.

Deregulation of petrol prices was done by the government six months back, permitting fuel retailers to set up the prices. A matching wrapping up to deregulate diesel costs was postponed by the government previous month.