Exclusive by Divvy Kant Upadhyay
for Daijiworld Media Network - New Delhi

NEW DELHI, Jun 4: The Cabinet Committee on Political Affairs (CCPA) on Wednesday approved the inevitable hike in the fuel prices.

Petrol will now be dearer by Rs 5, diesel by Rs 3 and LPG will cost Rs 50 more. The Cabinet, however, has decided against increasing kerosene price.

Rates will be effective from midnight.

New Delhi, Jun 4: According to latest media reports coming in, Prime Minister Dr Manmohan Singh is expected to address the nation on national television on Wednesday June 4 after the cabinet meeting on final decision regarding fuel price hike.

Reports coming from New Delhi suggest that the price of petrol might increase by Rs 3 per litre and that of diesel might increase by Rs 2 per litre.

The LPG will see a new distribution plan by the UPA government. Reports suggest that government proposes to keep a cap of eight cylinders per year at the present rate, for further cylinders, the people will have to shell out exactly the double rate (that is, keeping in mind the current rate of Rs 300 per cylinder, the first eight cylinders of cooking gas will be at Rs 300 per cylinder and any further cylinders could cost Rs 650, as the present subsidy on the cylinders is Rs 350 per cylinder).

The prime minister had made it clear on Monday June 2 that a hike in fuel prices was inevitable under the prevailing circumstances of soaring international commodity and fuel prices. He had asserted that the government could not insulate people from these inflationary trends beyond a point for the sake of sustaining a robust growth-oriented economy.

The BSE sensex on Wednesday opened nearly 50 points down (trading at 10.20 am).

Latest Update:

The Cabinet Committee on Poilitical Affairs approved fuel price hike on Wednesday. The amount by which the fuel price will be hiked is yet to be announced.