Government of India may hike fuel prices
With crude oil touching $ 135 a barrel, the Cabinet headed by Prime Minister Manmohan Singh may meet on Friday to consider raising petrol and diesel prices among other measures to bailout state run firms that have been reeling under unprecedented high crude prices.
With Indian Oil, Hindustan Petroleum and Bharat Petroleum projected to lose Rs 200,000 crore in revenues on sale of petrol, diesel, domestic LPG and kerosene below import cost, industry sources said a hike in the range of Rs 2 to 5 per litre appears on the cards. Petroleum Minister Murli Deora on his part neither denied nor confirmed Cabinet being scheduled for Friday.
The three firms are currently losing Rs 450 crore in revenues on fuel sales every day. Petrol is being sold at a loss of Rs 16.34 a litre, diesel at Rs 23.49 per litre, LPG at Rs 305.90 per cylinder loss and kerosene at a discount of Rs 28.72 per litre.