The UPA Government today hiked the retail price of Petrol by Rs two per litre and price of Diesel by Re one per litre to offset the losses incurred by oil marketing companies (OMCs) due to continued surge in global prices of oil, Petroleum Minister Murli Deora said today.
The price of petrol has increased by Rs 2 a litre, and diesel Re one a litre and would be effective from midnight.
The government had last increased petrol and diesel prices on June 6, 2006.
The OMCs will benefit Rs 840 crore from the fuel price hike, Petroleum Secretary M S Srinivasan said.
The government also hiked the share of oil bonds to 57 per cent of the total under-recoveries from 49 per cent.
The government has already issued bonds worth Rs 11,256.92 crore to the three state-owned oil marketing companies (OMCs) as compensation for under-recoveries because of rising global crude oil prices. These bonds will have a coupon rate of 7.95 per cent and mature in 2025.
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