Think twice before buying a car, fuel prices go up again

Posted by Staffreporter  |  25. June 2011

Fuel prices rise yet again. The government on Friday decided to increase diesel price by Rs.3 per litre, Domestic LPG by Rs.50 per cylinder and kerosene by Rs.2 per litre. This decision was taken in a meeting of Empowered Group of Ministers headed by finance minister Pranab Mukherjee. This increase is exclusive of local sales tax says oil minister S Jaipal Reddy. Reddy claims that these hikes were necessary in view of increase in International crude oil price and also describes the hikes to be “Modest and Minimal”.

Rates will differ from city to city due to the differential rates of Vat/sales tax. The government has also decided to slash custom duty on crude oil, diesel and petrol. The reduction in the excise duty on diesel would lead to a revenue loss of Rs. 23,000 crore this fiscal. The price hike will help the oil companies to limit their revenue loss by Rs. 21,000 crore.

Diesel price in Bangalore will be Rs.45.34 per litre; LPG is also up by Rs.50 pushing your gas bill to around Rs. 410. Due to the increase in the fuel prices bus fares are also said to increase. KSRTC plans to increase bus fares in two days.

The rise in the fuel and gas prices is hitting the ‘AAM AADMI’ hard but if we compare our fuel and gas prices with other countries we are comparatively cheaper. In Pakistan LPG rates are Rs. 611.40 per cylinder, Rs.821 in Nepal, Rs.878.90 in Sri Lanka and Rs.484 in Bangladesh.

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