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Diesel gets more flammable by Rs 5

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Published on: Thu, 13 Sep 2012 at 15:40 IST
Diesel gets more flammable by Rs 5
New Delhi: Much anticipated fuel hike was finally announced by the government today. The government has hiked Diesel prices by Rupees 5. Increased rates will be effective from today midnight.

Under new provisions, the government has also cut down LPG gad cylinder allocations. Now, a consumer would be able to avail six gas cylinders in one year. And to avail seventh cylinder consumer will pay market prices. Cylinder prices will be decided very month.

The step by the government is seen as step to lower increasing budget deficit. The government was already under immense pressure of oil companies to cut down subsidies on fuel prices. Moreover, the step had become imminent as leading credit rating agency had warned of India losing its ranking if steps were not taken.

According to market analysts, the step is going to enhance already risen inflation and will have an overall impact on already reeling Indian economy.

Meanwhile, Bhartiya Janata Party (BJP) have strongly crticised the hike. While CPM said that government has failed to control hike.
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