Citizens feel the heat as the oil hike hits hard

POLITICS \\ Petrol prices were increased by `7.50 a litre in May, leading to furore among automibile owners in all metros. The hike was inevitable as the rupee fell a record life low of `56 per dollar in May. State-owned oil companies decided to raise petrol prices by `6.28 per litre excluding local sales tax and VAT. With the taxes, the hike came to `7.50 per litre. Prior to the hike, petrol costs in the national capital was `65.64 a litre. Currently, it costs `70.24 per litre. Already, oil companies have informed the government about their need to increase the petrol prices by `4 at least. The last petrol price hike happened in November 2011even though the Centre had ‘decontrolled’ petrol prices in June 2010. The price of diesel, kerosene and cooking gas were also raise in June 2011. Stateowned oil firms lost a total sum of `4,860 crore on petrol sales at the end of the 2012 fiscal. Even after the price hike they are losing around `6.28 per litre on petrol. The petrol rates in various cities after the hike are: Delhi—`70.24 per litre; Mumbai—`76.45; Kolkata—`75.81 and in Chennai it is to be `75.40. Inflation also rose 7.55 per cent in May because of the rising prices of the petrol and vegetables.