Bad news for Indian people, oil companies have announced a price increase of Rs. 5 per litre making the price of Petrol in Delhi Rs. 63.37 Per litre, in Mumbai its now Rs. 68.80, in Kolkata its priced at Rs. 67.50 and in Chennai it now costs Rs. 68.36 per litre. Not only this, the worse part is that another price rise is expected very soon as the oil companies are still running in loss on petrol prices. The prices of Diesel have not been revised as yet. This will only put more burden on the common commuters however will keep some control on food inflation as most heavy transport vehicles use diesel as fuel.
Another bad news will come soon with another price rise which maybe announced in a couple of months from now. This price increased announced today will be applicable from the 15th of May 2011 (starting midnight). This increase will father push up the sales of diesel cars in India as running cost of a petrol car is almost twice now with the price differential of the diesel and petrol prices in India is almost a steep two folds. This differential is because of the subsidy which India govt. provides on diesel fuel in India.