The Union government led by UPA, after a high level meeting between the PM, Sonia Gandhi and the Petroleum Minister, has announced a hike in petrol prices by Rs 4 and diesel prices by Rs 2, with immediate effect. The move can lead to stiff resistance from by opposition parties in the forthcoming budget session of the Parliament.

The hike is aimed at helping the State-run Oil Marketing Companies (OMCs), facing huge financial pressure due to increase in global prices of crude oil. However, the prices of Kerosene and LPG have not been revised, in the interests of common man, especially, women and poor sections of society.

Mr. Murli Deora said that global crude prices has jumped to $70 a barrel since December, and oil marketing companies were losing Rs. 5.82 a liter on petrol and Rs. 3.62 a liter on diesel in New Delhi. The public sector oil firms are still losing Rs. 92.96 per gas cylinder and Rs. 15.26 on a liter of kerosene, but the government did not touch their prices for the sake of public.

Petrol will now be available at Rs. 44.63 a liter and diesel Rs. 32.87 in Delhi, following the hike. Meanwhile, the government has also been planning the deregulation of prices of petroleum products, in a bid to lift administrative control over petroleum products.