The report said the Petroleum Ministry had already notified the Cabinet Secretariat about various options to increase prices of petrol, diesel, LPG and kerosene. The final decision on the amount of hikes was yet to be decided, it was learnt.
Sources said the Finance Ministry ran out of funds to subsidise products. An EgoM would have to be formed while a meeting of the Cabinet Committee of Political Affairs (CCPA) would be organised to take a final call on the crucial matter, the report said.
Oil companies are currently losing Rs 1.37 a litre on petrol, Rs 34.3 a litre on kerosene, Rs 19.26 a litre on diesel and Rs 347 per cylinder on domestic LPG after international crude prices have touched $115 per barrel again.
Industry sources said prices of diesel and LPG have not been raised since June last year although the cost of production has gone up by 28 per cent, the report said. Petrol prices have been revised four times this fiscal. In May, prices were raised by Rs 7.54 a litre which was followed by a rollback of Rs 2.02 a litre on Jun 3. A further reduction of Rs 2.46 was effected on Jun 29 while a marginal increase of Rs 0.70 was made in July.