01 July 2009;dailypioneer.com:New Delhi:Days before the general budget, the government on Wednesday increased petrol and diesel prices by Rs four and Rs two a litre respectively effective midnight tonight, but spared kerosene and domestic cooking gas from a hike. "The hike was necessitated because of rising international crude oil prices which have doubled to USD 70 a barrel since December," Petroleum Minister Murli Deora told reporters here. The issue was not taken to the Cabinet, as is done generally, but Deora consulted party leadership and Prime Minister Manmohan Singh to decide on the hike. The decision would help garner Rs 13,000 crore this fiscal, although the oil companies were projecting a loss of Rs 39,000 crore before the hike. The decision comes ahead of the July 6 budget day. Parliament's budget session is to begin tomorrow and clearly the government wanted to take a decision before that.
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