Steep hike in oil prices

In a surprise move, the Union government bypassed the Cabinet to raise the price of petrol by Rs 4 per litre and that of diesel by Rs 2 a litre with effect from Wednesday midnight. In the state, the hike was Rs 4.44 for petrol and Rs 2.17 for diesel.

The petroleum minister, Mr Murli Deora, told reporters that the hike was necessitated because of rising international crude oil prices which have doubled to $70 a barrel. Mr Deora only consulted party leadership and the Prime Minister, Dr Manmohan Singh, to decide on the hike. The decision was rushed through since the Parliament’s Budget session is to begin on Thursday and the government wanted to act before that. The weekly Cabinet meeting is scheduled for Thursday.

Mr Deora said the government will not raise the domestic LPG and kerosene prices though the public sector oil companies are losing Rs 92.96 per cylinder and Rs 15.26 per litre of kerosene respectively.

To read the full article, click here..
To read the ePaper, visit: http://www.dc-epaper.com/

Flying gets costlier but no sop for city

Top airlines like Air India, Kingfisher and Air Deccan will hike fares from Tuesday.

This follows the decision by oil marketing companies to increase the cost of aviation turbine fuel by 18.5 per cent. ATF costs around Rs 69,000 per kilolitre in New Delhi and most other cities.

Air India will impose Rs 300 as additional fuel surcharge (AFS) for travel below 750 km and Rs 500 for distances beyond that.

Kingfisher and Air Deccan will charge Rs 300 for travel up to 750 km and Rs 550 for distances beyond that.

Jet Airways will impose similar surcharge from June 7. Other airlines are likely to announce a fare hike in a couple of days.

ATF is cheaper at Shamshabad airport because the government collects only 4 per cent sales tax against 33 per cent elsewhere. ATF costs Rs 52,000 per kilo litre.

To read the full article, click here...
To read the ePaper, visit: http://www.dc-epaper.com/deccanchronicle