| GEO Business|
| India hike petrol prices after one year|
| Updated at: 1509 PST, Thursday, July 02, 2009|
NEW DELHI: The Indian government raised prices of auto fuels to stem the losses of state-owned retailers that sell petrol and diesel below cost price, revealing its intention to deregulate the sector.
Petrol will be costlier by Rs 4 a litre and diesel by Rs 2 a litre from Wednesday midnight. Prices of cooking gas and kerosene were left untouched, as it could affect the poorer sections of the society.
The last time auto fuel prices were raised was on June 4, 2008. It was followed by two quick rounds of price cuts in December 2008 and January 2009, well before the General Elections were announced, as global crude prices came down sharply. As a result, petrol became cheaper by Rs 10 a litre and diesel by Rs 4 a litre.