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India raises fuel prices by 10 pct
Posted by Yogesh on Wednesday, 4 June, 2008
NEW DELHI, June 4 (Reuters) – India agreed to raise its petrol and diesel prices by about 10 percent on Wednesday, more than expected, curbing losses at its state-owned refiners but stoking inflation and risking a political backlash.
After 10 days of debate over the price increase, the cabinet also agreed to cut the import duty on crude oil to support refining and retailing firms like Indian Oil Corp (IOC.BO: Quote, Profile, Research), Bharat Petroleum Corp (BPCL.BO: Quote, Profile, Research) and Hindustan Petroleum Corp (HPCL.BO: Quote, Profile, Research).
Price of Petrol, currently 45.53 a litre in Delhi, will rise by 5 rupees, while diesel, which retails at 31.48 rupees, will cost 3 rupees more, Petroleum Minister Murli Deora told reporters.
With the hikes, India joins other Asian nations like Indonesia and Malaysia that are raising regulated domestic fuel prices as they find they can no longer afford to shield their consumers from the full effect of record global prices. Source Reuters
