December 17, 2011

Relief for Public as No Hike in Petrol Prices

In a huge relief for the common people as the state-run oil firms decided not to go ahead with the petrol price hike analysing the current situation when the rupee fell against the US dollar.

The Oil Marketing Companies, which were about to review the petrol price on Thursday, deferred the move till indefinite period after a meeting.

The possible hike in petrol prices would have put the government in trouble creating a space for the Opposition in the Parliament. While the UPA government is facing heat on many issues including high inflation, Lokpal Bill and 2G, the hike in petrol prices would be another blow to it.

Sources said that the move came after the oil companies were advised by the Petroleum and Natural Gas Ministry to put the review on hold.

Earlier, the companies had hinted that the petrol prices were likely to be hiked by 65 paise to 85 paise on Friday. However, the firms did not get any positive indication from the government.

Meanwhile, the Reserve Bank of India has shown its concern over the high inflation and decline in Indian currency against dollar by keeping the interest rates unchanged on Friday. It also hinted that the key policy rates will also be brought down in near future.

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