Pros and cons of petrol price hike - Photos-1
Business Today

Pros and cons of petrol price hike

Petroleum products and fertilisers form a substantial percentage of the Rs 2.16 trillion (a trillion is one lakh crore) subsidy bill. With global crude prices rising in 2011/12, owing to the political turmoil in West Asia, the oil subsidy has shot up.
The recent hike around Rs 7.5/litre was the steepest hike in petrol price ever and the first increase in more than six months. Previous high was Rs 5 a litre done twice - May 5, 2011 and May 24, 2008. State-owned oil firms incurred a loss of Rs 4,890 crore on petrol sales in the fiscal ending March 31, 2012.