Fuel price hike will impact inflation adversely, says Mukherjee

November 4, 2011 | Business | Written by

New Delhi, Nov. 4: Finance Minister Pranab Mukherjee on Friday said the fuel price hike will adversely impact inflation, and added that the price of petrol is decided by oil companies and not by the government.

“Of course it will have some adverse impact, because the oil prices are going up and petrol is a decontrolled item,” Mukherjee told mediapersons outside his office here.

Mukherjee said that the Central Government had listed petrol as a decontrolled item and had no control over the prices of the commodity, whereas the price of diesel was kept in check, as it was a controlled item.

“Petrol prices are increased by the petroleum companies, not by the government. Diesel, kerosene and gas are controlled items. Petrol is a decontrolled item,” he said.

In what came as yet another blow for the common man, with effect from today, the petrol prices were hiked by rupees 1.82 per litre making it the fourth hike in petrol prices this year. (ANI)