Government has hiked petrol prices by Rs. 5 per litre (reducing under-recoveries by Rs. 5500 crores). Diesel is up by Rs. 3 per litre (reducing under-recoveries by Rs. 14700 crores). LPG cylinder has been hiked by Rs. 50 per cylinder. Kerosene prices remain unchanged. Customs duty on pertol and diesel is cut by 2.5%Customs duty on crude has been reduced from 5% to zero. Excise duty has been reduced by Re. 1/lt on petrol and diesel as per the news flashing right now.
Mathematics suggest that this is the best government could have done. Apparently this is the least possible burden on the consumers. However, this will impact the inflation to increase to 8.4% vs 8.1%.
Meanwhile, Left has called for national stir againt the price hike.