Government has hiked prices of petrol by Rs 2 per litre and diesel by Re 1 per litre and it will be effective by midnight of Thursday. Annualised benefit to oil companies is estimated to be around Rs 6,500 crore and the hike would benefit by Rs 410 crore for the remaining FY'08. The share of under-recoveries for FY'08 would be Rs 40,000 crore and oil bonds will cover 57% of under-recoveries.
