Petrol prices are likely to be hiked by Rs 5 in a day or two, sources told NDTV. Oil companies have got the go-ahead from the government to increase prices after the monsoon session of Parliament, and are busy crunching numbers and deciding on the quantum of the hike.
The government is also likely to push for a hike in other fuel products, including diesel, soon. Oil companies are expected to lose Rs Rs 2 lakh crore this fiscal year.
The development comes a day after the Petroleum Ministry sent a comprehensive note to the Cabinet Secretariat listing various options for increasing the prices of diesel and LPG.
Meanwhile, key UPA ally Trinamool Congress has said it will oppose any hike in fuel price.
"We are against any kind of price hike," TMC leader and Railway Minister Mukul Roy said.
Oil firms are currently losing Rs 1.37 a litre on petrol, Rs 19.26 a litre on diesel, Rs 34.34 per litre on kerosene and Rs 347 per cylinder of domestic cooking gas.
Prices of diesel as well as LPG and kerosene have not been increased since June last year, although the cost of production has jumped nearly 28 per cent, industry sources earlier said.
Oil companies revised prices of petrol only on four occasions this fiscal year: a hike of Rs. 7.54 a litre on May 24, followed by a partial rollback by Rs. 2.02 per litre on June 3, and a reduction of Rs. 2.46 a litre on June 29, followed by a marginal hike of Rs. 0.70 a litre on July 24.
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