Fuel Price again increased from 5th June 2008. ( The article below is about the earlier increase. Click on the link to read the new article)
The Union government has finally increased fuel prices namely petrol by Rs 2 and diesel by Re 1 effective from Thrusday midnight. The government has dilly daying with this while the public oil PSUs has been bleeding due to global increase in oil prices. Though the government has issued bonds to compensate the companies. So public should be ready to pay more.
One of the thing I found very difficult to understand – why the fuel prices are the highest in Bangalore? Is it because of transportation cost which looks very unlikely. That way Delhi should had the highest cost as most of the oil is brought into the country via sea route. The other explaination could be state tax which could be higher than other states. Ok, there could be another take that cost could be more for a place which is at more distance from a refinery but I do not think Bangalore is that far. As Karnataka has a refinery at Mangalore. Check the comparision table published in TOI Today: