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Minister of State in Prime Minister's Office (PMO) V Narayanasamy on Thursday said the government took the decision to hike petrol price to ensure that the oil firms do not run into losses as business entities. "There is a widespread agitation from the people and our allies also are having reservation on increase in the price of petrol. But the situation is like that. And we will have to see that the oil companies have to survive. They should not run into losses and we should not kill the public sector organization," said Narayanasamy. Narayanasamy further reminded that Prime Minister Dr. Manmohan Singh had made it very clear in his speech on the occasion of UPA-II's third anniversary that some hard decisions have to be taken. "Actually, the honourable Prime Minister while speaking in the three years completion of our UPA Government-II, he also said that some hard decisions have to be taken. The oil companies at this rate they will be losing 1,32,000 crores in the year 2012-13. And last year it was about one lakh two thousand crores for the subsidy that has been given by the government on petrol, diesel, kerosene and cooking gas," he added. "Now, actually the government also sees the demand made by our allies and also the public feelings. At this present juncture, the government has no option and therefore the price of petroleum has been increased," said Narayanasamy. "As far as petrol is concerned, it is very clear that it is deregulated," he added. In the steepest ever increase, the UPA-II Government on Wednesday raised petrol prices by about a massive Rs 7.54 per litre, the first hike in rates in six months. The hike in prices means that the price of petrol in Delhi will go up from Rs.65.64 per litre to Rs.73.14 per litre. In Mumbai, the price will go from Rs.70.66 per litre to Rs.78.16 per litre. In Kolkata, the price will go from Rs.70.03 per litre to Rs.77.53 per litre In Chennai, the price will go from Rs.69.55 per litre to Rs.77.05 per litre. State-owned oil companies have decided to raise petrol price by Rs 6.28 per litre excluding local sales tax or VAT. The hike translates into Rs 7.50 per litre in Delhi and is the steepest ever. The decision to hike petrol prices came a day after the end of the Budget Session of Parliament.

Govt raised petrol price to ensure oil firms' survival: Narayanasamy