It's here, finally ! The much-feared hike in the prices of diesel and LPG beyond the 6th subsidized cylinder has been officially announced.
A litre of diesel will cost more by Re. 5/- and the supply of subsidized LPG cylinders (@ Re. 399 /-) will be limited to 6 cylinders per year per household. Beyond this, every LPG cylinder wil cost Re. 746. Though no hike in petril prices has been announced as yet, it is a matter of time only. The government intends to cut down some deficit due to under-recoveries by Oil Marketing Companies. Even after the current round of price hike, the OMCs still have a combined deficit of Re. 167000 Crore.
The diesel price hike is likely to put further inflationary pressure on the prices of pulses, vegetables and other essential items. Most of these commodities are transported by vehicles using diesel as a fuel. The Trinamool Congress has conveyed its displeasure over the move and says that it was not consulted on the issue.