Motorists' hopes of cheaper fuel till the Budget were dashed sooner than anticipated. The Cabinet on Thursday announced a hike in fuel prices ( watch video ).
Effective from midnight, prices of petrol would go up by Rs 2 a litre and diesel by Re 1.
Oil companies are likely to get a benefit of Rs 840 crores from this move.
Till last fortnight, the government appeared to be buying time till the Budget after a ministerial panel on the issue stood divided.
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