State-run oil companies have raised the price of petrol by Rs 3.14 per litre, the third substantial increase since January, a move which is expected to stoke inflation and upset household budgets. The decision sparked an immediate protest from UPA partner Trinamool Congress. Senior leader Mukul Roy is reported to have conveyed the party’s opposition to the move to finance minister Pranab Mukherjee. The hike will also cast a shadow on the government’s decision to limit the number of subsidized cylinders to four a year for consumers. The ministerial panel on fuel is to take a call on the plan on Friday. Oil companies had last raised petrol price by Rs 5 a litre on May 15. Before that, they had twice revised prices in January by Rs 2.50 a litre. Prices went up marginally due to an increase in dealer margin. Petrol prices vary from city to city depending on VAT and other local levies. Oil companies argued that a fall in the rupee against the US dollar had increased their cost of crude, forcing them to raise the price. But some sections in the government as well as analysts are not buying this. They say the rupee’s movement in recent days does not warrantsuch a steep hike, especially when inflation is near double digits. Latest data shows inflation, as measured by the wholesale price index, stood at 9.78% in August. It has remained above the 9% mark for nine consecutive months.
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