Govt decides to hike petrol, diesel prices

NEW DELHI: Government has decided to raise petrol and diesel prices, oil minister Murli Deora said on Friday, as part of a plan to move towards a market-determined fuel price regime.

While petrol prices go up by Rs 3.73 per litre, diesel has been hiked by Rs 2 per litre. LPG also goes up by Rs 35 per cylinder. Kerosene prices, however, will not be market-driven, say sources.

The decision follows a ministerial panel meeting on freeing up petrol prices and cutting subsidies on diesel, kerosene and cooking gas, to help rein in the fiscal deficit, which is projected at 5.5 percent of the gross domestic product in 2010/11 and free up revenues for other programmes.

The move will help boost profits of state-run oil firms that have been losing revenue from government-set lower prices.

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