UPA Cabinet approves Fuel Price Hike

The Cabinet Committee on Political Affairs (CCPA) have finally approved the fuel price hike. The meeting took place in the morning today. Petroleum Minister Murli Deora announced the cabinet's decision. The quantum of the hike will be announced later today. Prime Minister Manmohan Singh will address the nation to explain why the fuel price hike was necessary.

According to sources, petrol prices are proposed to be hiked by Rs. 3, while diesel prices will go up by Rs. 2. The LPG prices could be rationalized. There is a proposal to offer 8 cylinders per year to each family at the existing price. Any additional cylinder may cost more than double. However, some other sources have ruled out a hike in cooking gas and kerosene prices.

The government may also come up with a cut in excise and customs duty and oil bonds may be issued to bail out the oil companies. Meanwhile, the BJP has criticized the government's decision to go for a fuel price hike. It blamed the government for mismanaging the economicy policy.