Petrol, diesel, LPG prices to go up from January

21 December 2007

Mumbai: The government is expected to effect a moderate hike in the prices of petrol and diesel by the middle of January to help state-run oil firms reduce losses, petroleum secretary M S Srinivasan has said.

"Be prepared for a modest or moderate hike in the prices of petrol and diesel, after a meeting of the group of ministers in the first week of January," Srinivasan told reporters today.

"We are definitely not ruling out the hike. There will be a hike," he said. Without specifying the quantum of increase, he hinted at a Rs 2-3 increase in fuel prices.

Srinivasan said the government was providing domestic cooking gas for around Rs290, nearly half that of the actual cost, hinting again at a hike in LPG prices.

Petrol is being sold at a discount of Rs8.74 a litre, diesel at Rs9.92 per litre, kerosene Rs20.53 a litre and LPG at a loss of Rs256.35 per cylinder, he pointed out.

Indian Oil, Bharat Petroleum and Hindustan Petroleum stand to lose Rs69,753 crore on sale of petrol, diesel, LPG and PDS kerosene as the government has not allowed them to raise prices in line with the price of imported crude.