"We have been very patient, not raising prices since December despite our cost of production spiraling. But there is a limit to which we can borrow money and produce fuel for the country," said chairman RS Butola.
"Overall, from the perspective of vulnerabilities emerging from the fiscal and current account deficits, it is imperative for macroeconomic stability that administered prices of petroleum products are increased to reflect their true costs of production," he said.
The oil companies were not allowed to hike fuel prices due to the coalition and electoral compulsions.
Apart from losing on petrol, the state fuel retailers also suffer a loss of Rs 573 crore a day on cooking gas, kerosene and diesel.
"We have suggested that the government should temporarily end deregulation and give subsidy to make up for the difference between cost of production and sale price," he said.