Flambee de l’essence!

As from today, 3rd July 2007. price of petrol per litre has risen to Rs 39, which represent a 20% increase. As for diesel its price has risen only by 4.76% to reach Rs 29.70. The price increases have been decided following the meeting of APM (Automatic Pricing Mechanism), which was held yesterday. The rise has been justified following the global crises in petroleum products-the strike in Nigeria, the geopolitical problems in the mid east and the ever increasing demand from India, China and the USA. Oil barrel has reached USD 70 on the global market.

There is a growing concern among the public about the eventual rise of domestic gas also in October. It is common to see gas stations close earlier when there are speculations about price increase thereby increasing their windfall gains.  Thus as usual, consumers get penalised. The price of petrol has reached its peak of Rs 40.60 in October 2006 while that of diesel was Rs 32.75 in Jul 2006 before both begin fluctuating again..

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