Union Finance Minister Pranab Mukherjee has said petrol prices are decontrolled and the centre has no role in deciding the prices.Mukherjee said the recent hike in petrol prices will have some impact on inflation, which is currently hovering close to the double-digit mark.
“Of course it will have some adverse impact on inflation. But the oil prices are going up and petrol is a decontrolled item,” he told reporters in New Delhi on Friday.
Oil companies on Thursday raised petrol prices by Rs 1.80 per litre, citing the impact of rupee depreciation on the cost of crude oil imports. Following the increase, petrol in Delhi will cost Rs 68.64 a litre.
On why the government’s allies were not kept in the loop about the price hike, Mukherjee said, “Nobody in the government knows… because petrol prices are increased by the petroleum companies, not by the government. Diesel, kerosene and gas are controlled items.”
Inflation in September stood at 9.72 percent, much above the Reserve Bank’s comfort level of 5-6 percent.
Petrol prices were freed from government control in June last year.