In a development that is sure to cause many a heart attacks and saying a lot of F word, Govt. has increased the gasoline prices by as much as INR 7.50/ litre. The price increase will come into effect post midnight. As always is the case, the reason for this cruel revision is the rupee losing strength to the US dollar. It may be noted that the rupee fell to a never before low of 56 per dollar on Wednesday. Various state owned oil companies will increase the petrol prices by INR 6.28 per litre (exclusive of VAT).
On Tuesday, Petroleum Minister S Jaipal Reddy said that fuel prices need to be raised urgently. , but refused to say when the hike would actually take place. Gasoline in Mumbai costs Rs 70.66 but will go all the way to cost Rs 78.16 from tomorrow.
This move is sure to help the sales of diesel cars become even stronger.