From correspondents in Delhi, India, 07:31 PM IST

India Wednesday allowed oil companies to increase the prices of transport fuels, resulting in petrol becoming dearer by Rs.4 per litre and diesel by Rs.2 per litre, following successive increase in global crude oil prices.

Petroleum Minister Murli Deora told reporters the new prices would take effect from the midnight of Wednesday. He made the announcement soon after a meeting with Prime Minister Manmohan Singh.

'The prices of kerosene and cooking gas are not being changed,' Deora said, adding the government will continue to incur a subsidy of Rs.15.26 per litre and Rs.92.96 per cylinder on these two fuels, respectively.

(Staff Writer, © IANS)