Pranab defends govt on petrol price hike

New Delhi: Finance Minister Pranab Mukherjee on Friday said that hike in petrol prices will have adverse effect on inflation.

"Petrol is a decontrolled item. Nobody in the government knows about the petrol price hike because prices are increased by the petroleum companies not by the government, Mukherjee said.

Oil companies brought yet another steep hike in petrol price, by Rs 1.80 per litre with effect from Thursday midnight making life more difficult for the aam aadmi. This is the fifth increase since December 2010 coming on top of falling rupee and rising cost of imported crude.

Prices are increased by the petroleum companies not by the government, Pranab Mukherjee said.

This means Fuel prices have been upped by 23 per cent in the last 10 months. Interest rates have shot up by 4 per cent in the last 10 months and food inflation has also gone up by 5 per cent in the last two months alone.

Petrol in Delhi will now cost Rs 68.64 per litre, up from Rs 66.64 a litre. The retail selling price in different cities will vary according to the local sales tax.

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