Fuel prices set to hike again

The Minerals and Energy Department has announced that the petrol price is set to rise by 50 cents per litre on all grades, while the wholesale price of diesel with a sulphur content of 0.005% will increase by 70 cents.

The wholesale price for illuminating paraffin is set to rise by 71 cents a litre, single maximum national retail price for illuminating paraffin by 94 cents a litre.

According to department on Tuesday, the increase is due to the average international product prices of petrol, diesel, and illuminating paraffin increase.

Last month, the department increased the petrol price by 55 cents a litre.

South Africa, however, is not the only country faced with escalating fuel prices.

In New Delhi, political parties opposed the hike in fuel prices.

Prime Minister Manmohan Singh on Monday however, warned that government was not in a position to fully insulate the consumer from the impact of rising oil prices.

"We cannot allow the subsidy bill to rise any further. Nor do we have the margin to fully insulate the consumer from the impact of world commodity and oil price inflation," the Prime Minister said, addressing the Assocham's annual meeting in New Delhi.

Calling for a wider political consensus, Singh said the government could insulate poor people "up to a point" and economic pricing of oil was essential to sustain growth.

However, he expressed confidence that the Indian economy would continue to grow at 8 percent and above despite global slowdown.

India has maintained an economic growth of 9% and above for the last three years.

While the government would remain focused on reversing the upsurge in inflation, the Prime Minister said, "We have to learn to husband our fiscal resources prudently."

Article published courtesy of BuaNews