New Delhi: The Empowered Group of Ministers (EGoM) approved freeing petrol and diesel prices from government control and will be market driven, leading to a steep hike in the prices.
The petrol prices will go up by Rs 3.73/litre and diesel prices by Rs 2/litre.
The ministerial panel also approved Rs 35 per cylinder hike in LPG prices and Rs 3 per litre in kerosene prices.
However, the kerosene prices will not be market driven.
The decisions, taken by the EGoM headed by Finance Minister Pranab Mukherejee, were timed appropriately to take advantage of relatively lower global crude prices, which are hovering around USD 77 a barrel.
Besides, this would also help cut down on the government’s huge subsidy bills, as also relieve the oil marketing PSUs of staggering burden on account of selling these fuels much below the market prices.