Group Discussion Topic: Fuel Price Hike
With global crude oil prices on the downswing, the UPA government is adopting a wait-and-watch policy before taking the political plunge to raise prices of controlled petroleum products —diesel, cooking gas and kerosene, Indian Express reported Friday, May 27.
The Empowered Group of Ministers (EGoM) on fuels under FM Pranab Mukherjee is expected to raise diesel and cooking gas prices on June 9.
Diesel price is likely to be increased by Rs 2-3 a litre and cooking gas by about Rs 35 per cylinder. The increase in price of diesel, which is the main transportation fuel, is expected to push up cost of essential items, all goods that move on trucks as well as bus and taxi fares.
The fuel price will hit the common man’s pocket by increasing cost of living leading to cost push inflation. Since petroleum is an intermediary product, it will increase transportation and living cost.
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