With a view to cushion the burden of rising prices on the masses, Chhattisgarh government today made LPG cylinders tax-free and reduced the prices of petrol and diesel in the state.

Pressured by the industry and the general public to neutralise the impact of the recently-effected fuel price hike, the Karnataka government has commenced a brainstorming session on the extent of downward calibration of sales tax on petro-products that can be allowed.

Acknowledging that rising inflation was the "biggest challenge" before the country, Congress president Sonia Gandhi today said the Centre had no other choice but to increase petrol prices and it was trying to shield people from additional burden.

Contrary to Chief Minister B C Khanduri's announcement, prices of petrol have gone up instead of coming down in Uttarakhand today.

Malaysia has hiked petrol prices by 40 per cent, which will be effective from midnight tonight to reduce the government's massive subsidy.

The inflation spiral is a chance to fix things - hiking petrol prices, for instance, will promote conservation.