Diesel price hiked; cap on LPG subsidy

New Delhi: The government on Thursday decided to hike diesel prices by Rs. 5 per litre effective Thursday midnight, but left petrol, kerosene and LPG rates untouched.

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.