Diesel Price Increased by Rs 5 per litre; Subsidised Domestic LPG Cylinders restricted to 6 in a year

The Cabinet Committee on Political Affairs (CCPA) met on 13thSeptember, 2012 under the chairmanship of the Prime Minister to consider the disturbingsituation arising out of projected massive under-recoveries of Rs. 1,87,127 crore for the financial year 2012-13 in the wake of high international crude oil prices and sharp depreciation of Indian Rupee against US Dollar. The uncompensated under-recovery causes loss tothe Public Sector Oil Marketing Companies (OMCs). The CCPA took the following decisions to be implemented with effect from the midnight of 13/14 September 2012 :

Petrol prices may go up this week; diesel, LPG rates may follow

The government may hike diesel and domestic LPG rates next week while an increase in petrol prices may happen later this week.“The Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee (on fuel price hike) was to meet tomorrow evening. It has been put off,” Oil Minister S. Jaipal Reddy told reporters in New Delhi.The EGoM was to meet on Wednesday to consider raising the diesel price by Rs. 3-4 a litre and domestic LPG rates by Rs. 20-25 per cylinder.