Mumbai: The union cabinet will meet tomorrow to decide on raising fuel prices and save public sector oil marketing firms that have amassed revenue losses of over Rs2,25,040 crore, external affairs minister Pranab Mukherjee told reporters on the sidelines of an industry event.

Subsidised sales of petrol, diesel, cooking gas and kerosene in India, Asia's third-largest oil consumer, have encouraged higher consumption. Domestic fuel sales in India rose seven per cent in 2007-08, the fastest growth in eight years.

The government, which over the past one week held several rounds of consultations with senior ministers and UPA chairperson, has so far held back a decision on fuel price for want of consensus on the issue.

The petroleum ministry had sought a  price hike of Rs10 a litre for petrol, Rs5 per litre for diesel and Rs50 per cylinder for LPG prices.

Indications are that the hike may be moderated to Rs3/5 a litre on petrol, Rs2/3 a litre on diesel and by Rs20 per 14.2-kg cylinder for LPG, sources said.

Mukerjee refused to comment any further on the cabinet agenda. He merely sad, ''We are still discussing the issue and a cabinet meeting is scheduled for tomorrow." 

The cabinet committee on political affairs (CCPA) will meet early tomorrow and if a consensus is hammered at the CCPA meeting, the cabinet committee on economic affairs (CCEA) may be convened, sources said.

Prime minister Manmohan Singh yesterday indicated an imminent fuel price hike when he said consumers cannot be fully insulated from the impact of rising global oil prices.

Petroleum ministry officials are sure of an impending hike in fuel prices and said the government is weighing losses at state oil firms, which are running out of money to import crude oil.