As rupee tumbled to a fresh low, breaching the 66 mark, Sensex closed at 590.05.
Crude oil prices also sky-rocketed to $ 110 per barrel while gold prices swung to a record high of Rs 32,500. But the price hike doesn't end there!
In the coming days, expect a steep rise in the prices of diesel, possibly by Rs. 5 per liter. The ministry feels that a Rs 3 per liter diesel price hike is meaningless when under-recoveries are over Rs 10 per liter.
Sources reveal that the Ministry of Petroleum and Natural Gas has plans to approach the Union Cabinet with various permutations and combinations on price hike. The Finance Ministry apparently wants a one time diesel price hike to contain the current account deficit. Decision on this is awaited until the current Parliament session gets over.
On the other hand, railway tariff is likely to go up in October. In the wake of rising energy cost, ministry has decided to increase the freight charges. "Tariff has already been increased. As per the proposal of the budget, it will be hiked again in October," said Minister of State for Railways Adhir Ranjan Chowdhury on the sidelines of a conference in New Delhi.
(AW: Suchorita Dutta)
