The Indian government this week increased the prices of petrol and diesel by Rs 4 and Rs 2 respectively. Fuel prices were last increased in June 2008, followed by reduction in prices in December 2008 and in January 2009. Prices were slashed at a time when global crude oil prices had come down sharply. Since February 2009, fuel prices have more than doubled, leading government-owned oil companies BPCL, HPCL and IOC to make considerable losses. Petroleum Minister Murli Deora told media persons that the decision to hike prices was taken after consulting Prime Minister Dr Manmohan Singh and UPA Chairperson Sonia Gandhi.

Petrol prices (per litre) have gone up to Rs 44.63 in Delhi, Rs 48.25 in Kolkata, Rs 48.76 in Mumbai and Rs 48.58 in Chennai; diesel prices (per litre) have gone up to Rs 32.87 per litre in Delhi, Rs 35.03 in Kolkata, Rs 36.70 in Mumbai and Rs 34.98 in Chennai.