Diesel price hiked; cap on LPG subsidy
The Cabinet Committee on Political Affairs, headed by Prime Minister Manmohan Singh, on Thursday evening decided to raise diesel prices by Rs. 5 per litre, excluding VAT.
It also decided to restrict supply of subsidised cooking gas to six cylinders per household per year.
Diesel in Delhi costs Rs. 41.32 a litre and after this hike it will cost Rs. 46.95, after considering 12.5 per cent VAT on the hike.
Petrol needed a hike of Rs. 6 per litre but the government offset that by reducing excise duty by Rs. 5.50 per litre from existing rate of Rs. 14.78 per litre.