May 16: Amid protests from political parties over the hike in petrol prices, the government on Monday said the product was deregulated and the revision in the fuel rate was done by the oil marketing companies (OMCs). It, however, admitted that the hike would have “some impact” on overall inflation. “It was for the petroleum companies to decide at what point of time they will do so. When we deregulate it, we have to leave it to the judgement of the OMCs,” the finance minister, Mr Pranab Mukherjee, said.
Later in a statement, he said “international scenario on commodity prices does not appear good at present.... We will continue to monitor the situation and take necessary measures to address the inflationary pressures on the economy”. On the impact of the hike in petrol prices on inflation, he said, “There will be some impact on overall inflation due to the adjustment in the petrol prices effected by the oil marketing companies in the coming months.”
OMCs on Saturday went for the steepest ever hike of Rs 5 a litre in petrol prices. Inflation in April stood at 8.66 per cent, as per data released on Monday. Experts opine that the hike in petrol prices would impact the headline inflation and the numbers would become evident in the data for May, which will be released next month.