Petrol prices will be hiked all around the country including major cities such as - Delhi, Mumbai, Bangalore, Hyderabad and Kolkata.
Government sources earlier had informed that fuel and other commodity prices will shoot up after the monsoon session.
Following the higher crude prices in the global markets, the oil companies are losing Rs 550 crore everyday.
Government is reported to have accepted oil companies demands of increasing petrol prices and the government may increase other fuel products including diesel soon.
On account of under-recovering, oil firms are expected to face a loss of Rs 2 crore in this fiscal year. The oil companies are currently losing Rs 1.37/litre on petrol, Rs 19.26/litre on diesel, Rs 34.34/litre on kerosene and Rs 347/cylinder of domestic cooking gas.
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 Jul 2012.