Diesel price hike likely in June, say sources

The UPA government may face more flak over the next few days. Sources said that after petrol a diesel price hike is on the cards as well. In fact the government may hike prices as early as June.

Sources have also said that the timing will depend on the political scenario, the way the rupee moves as well as on the market conditions. Sources has also learnt that the government believes that small frequent hikes have become the need of the hour and that the government has nearly exhausted its subsidy figures for the current year.

Earlier on Friday, Oil Minister Jaipal Reddy met Prime Minister Manmohan Singh and justified the petrol price hike. He also said that an immediate rollback was not on the cards. Government owned Oil Marketing Companies (OMCs) raised the price of petrol by Rs 7.54 per litre on May 23, 2012.

From the Opposition to the allies, there is no respite for the government. West Bengal Chief Minister Mamata Banerjee will take out a protest march in Kolkata on Friday.

The DMK has already called for an agitation on May 31. The united opposition of both the Left and the NDA have announced a nationwide bandh on May 31 as well.

The BJD has called for a statewide band in Orissa on May 30.

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