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Petrol up Rs 5, diesel Rs 3 a litre; LPG up Rs 50

June 4, 2008

In the highest ever price increase, the government on Wednesday announced a Rs 5 a litre increase in petrol, Rs 3 on diesel and Rs 50 per LPG cylinder, together with customs and excise duty cuts, to combat spurt in global oil prices. The United Progressive Alliance government, however, spared the poor man's cooking medium kerosene from any increase.

The Union Cabinet, chaired by Prime Minister Manmohan Singh, took a slew of measures to offset the surging global oil prices that had put the national oil companies under acute pressure.

The increase in prices would be effective from midnight on Wednesday, Petroleum Minister Murli Deora said.

Inflation to rise by 0.6 per cent

Inflation may rise by 0.5-0.6 per cent on account of fuel price hike, the petroleum secretary said on Wednesday.

So what do the prime minister, the petroleum minister, the Left parties and the opposition parties have to say about this? Well, read on. . .

Text: Onkar Singh in New Delhi & PTI

Image: A petrol pump employee fills petrol in a motorcycle's tank in New Delhi. | Photograph: Prakash Singh/AFP/Getty Images

Also read: Why crude oil price is zooming

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