Asia Bizz: The Petrol prices in India have gone up for the second time in a span of months, and is dearer by Rs.2.50, but the government cannot consider of hiking the diesel rates at least for now. Oil Secretary S Sundareshan has clearly stated that the Diesel prices cannot shoot up under such circumstances. He said that a group of companies have been considered by the government, as the one third of these companies cannot bear the recovery costs.

For the year 2011, the total diesel recovery cost has been amounted to Rs.72,000 crores, as international fuel prices are hinged at USD 93-94. Indian Oil Corp raised their petrol prices by Rs.2.50, Hindustan Petroleum went up by Rs.2.54 and Bharat Petroleum pushed their rates up by Rs.2.53.

Since December, the fuel prices have shot up twice, and this is now becoming a cause of great concern in the country. This time the hike has been the highest in almost six months, and the worst hit sector will be the transportation industry.

Source: MoneyControl


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