New Delhi: The government may raise petrol and diesel price up to Rs 4 a litre at a cabinet level ministerial panel meet on Wednesday, an oil ministry source told reporters on Tuesday.
“An Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee is scheduled to meet on May 11 to mull on a hike of Rs 4 a litre in diesel prices,” a top government official, refusing to be named, told reporters.
A Rs 3-4 a litre hike in the price of petrol, which had been freed from government control last June, is also on the cards, he added.
According to estimates, state oil marketing companies oil PSU — Indian Oil, Bharat Petroleum and Hindustan Petroleum — is estimated to make a loss of 1,80,000 crores, this fiscal if the prices are not raised in tandem with the global prices. This figure is excluding the loss it makes on the sale of petrol which is now decontrolled.
The three oil firms now suffers a loss of Rs 7.50 per litre on petrol, Rs 18.19 per litre on diesel, Rs 29.69 a litre on kerosene and Rs 329.73 per 14.2 kg domestic LPG cylinder.