Kerosene cost to go up as Govt allows oil firms to raise its price

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The price of kerosene is likely to increase with the Narendra Modi government allowing the state -owned oil companies to raise its price by 25 paise a litre each month for 10 months.

The aim behind the Government’s move was to cut the subsidy burden.

As it is, kerosene price was hiked by 25 paise a litre , the first increase in rate of the highly subsidised cooking and lighting fuel in five years.

Reports say that Petroleum Ministry has conveyed to oil marketing companies to raise kerosene price by 25 paise every month till April 2017.

”This means that its price is bound to increase.However,we all must welcome the move since it is going to cut the subsidy burden on the Government”,said an economist.

In any case,the Centre’s decision can take off only after the state governments accept and concur. “Before the price hike, kerosene cost Rs 14.96 a litre. Its price was last raised by Rs 2.64 a litre in June 2011.

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