Petrol prices may go up by Rs 1.50 to Rs 2 a litre next week, while the government is considering a hike in the prices of diesel by Rs 2 a litre as crude oil prices inched closer towards $90 (Rs 4,200 approx) a barrel.
A senior official said petrol prices are likely to be raised after the winter session of Parliament ends on December 13.
Petroleum minister Murli Deora met finance minister Pranab Mukherjee on Wednes-day ahead of a meeting of the empowered group of ministers.
Official sources indicated diesel prices might be increased by Rs 2 a litre.
In June this year, the government had deregulated petrol prices allowing oil marketing companies to fix market-determined prices. Diesel prices are still fixed by the government.