Decision on petrol, diesel price hike next week

The Govt is likely to decide next week on a price hike of Rs 4 per litre for petrol and Rs 3 a litre for diesel.

Virtually securing the consent of Left parties, the Government is likely to decide next week on a price hike of Rs 4 per litre for petrol and Rs 3 a litre for diesel while sparing cooking gas and kerosene.

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Petroleum Ministry, after confabulating with Left leaders and other concerned ministries, is understood to have veered around to the moderate hike in prices of fuel but spare the common man from the burden of cooking medium.

Petroleum Minister Murli Deora is expected to meet Prime Minister Manmohan Singh on the issue in the next few days, as the proposed meeting scheduled for Thursday may not take place, sources in the know of the development said.

Although the price increase required for offsetting the impact of surge in global oil prices works out very high, the government would contain the burden to a moderate level. Moreover, there are indications that there would not be another change in prices in the next couple of months even if international crude prices go up further.

Petroleum Ministry had been working for some time to find an acceptable price hike formula to save oil companies from bankruptcy, which are likely to face under-recoveries of Rs 73,500 crore this fiscal on account of selling fuel below cost.