Moderate increase in fuel prices likely

The diesel prices may be spared or raised only marginally keeping in mind the impact, such an increase would have on inflation.

The fuel group as a weight of three per cent in the wholesale price index (WPI) and a 25 bps increase in the index would push up WPI inflation from 7.82 per cent announced  today to 7.96 per cent.

 

Petroleum ministry officials later said that the retail price hike of petroleum products seems inevitable and added that a draft proposal on the matter for the consideration of the cabinet will be prepared by later today.