Get ready for a steep hike of around Rs 4-5 per litre in petrol prices this month.
The hike is likely to be announced as early as March 15 or by the month-end once parliament goes into a break.
State-owned oil companies are pushing for a hike in petrol, diesel, LPG as well as kerosene.
But a petroleum ministry source said: “While petrol prices may go up, it’s difficult to say anything about the other products, especially when UPA chairperson Sonia Gandhi cited price rise as one of the reasons for her party doing poorly in the assembly elections.”
Indian Oil Corporation this week made a strong case to petroleum secretary GC Chaturvedi for an immediate increase in fuel prices.
Oil companies are losing Rs 5 a litre on petrol, Rs 15 on diesel and Rs 390 on every LPG cylinder.
“With the Indian basket of crude oil ruling above $120 a barrel and the rupee-dollar exchange at Rs 49.80 a dollar, we have to pass on the increase in fuel prices (to the consumer),” an official said.