Indian government on Wednesday announced a hike in fuel prices to combat spurt in global oil prices.
According to the announcement
- Petrol prices were increased by 5 rupees
- Diesel prices were increased by 3 rupees and
- LPG prices were increased by 50 rupees
— the highest ever price raise
Indian Government has issued Notification for extending refund of service tax paid by exporters on three more taxable services in addition to existing 13 taxable services, as part of efforts to help firms hit by the rise of the rupee.
The finance ministry said in a statement the government was extending the refund of service tax paid by exporters on 16 items including,
India banned exports of all edible oils due to the rising domestic prices and control inflation. The ban will be in place till March 16, 2009.
Rising prices caused the Indian government to ban exports of rice, sugar, wheat, pulses and skimmed milk powder– even raised rice export prices. Ban on exports is another step to control inflation.
To discourage exports and control domestic food costs Indian government has raised the minimum price for exporting rice. India exports about 4-5 million tonnes of rice annually.
Non-basmati rice rate has gone up from $500 a tonne to $650 (Rs 26,000 rupees ).
Basmati rate has gone to $900 (Rs 36,000 rupees ). Earlier, there was no fixed minimum price for export of basmati rice.