Petroleum Minister Murli Deora declared the hike in prices of petrol and diesel after a brief discussion with Prime Minister Manmohan Singh.

From Thursday, July 2, there will be a Rs 4 hike in petrol price and Rs 2 increase in Diesel rates. The United Progressive Alliance government made the excessive increase within a short period after the elections which has not a favorable mark among the public. The hike in fuel will in turn increase the prices of day-to-day necessities including grocery, milk and water supply.

There will be no increase in the price of kerosene and LPG which incurs a loss of Rs 15.26 per litre and Rs. 92.96 per cylinder for the government as said by the petroleum minister. It has been said a barrel of petroleum in the international market has raised from $40 to $70 last December, 2008.

The government sustained the increase since the past few months and has made the change after analyzing the market.