New Delhi, May 3 (UNI) The Government is expected to announce a hike in petrol and diesel prices by Rs 2 to Rs 3 next week.
The hike has been prompted by oil firms continuing to lose around Rs 10 a litre due to rising global prices with under-recoveries totalling Rs 57,000 crore.
Union Finance Minister P Chidambaram had indicated in Coimbatore yesterday that a fuel price hike was unavoidable.
State-owned oil marketing companies have been selling petrol below the imported cost. Petrol was being sold at Rs 9.34 a litre below imported cost, while diesel was being sold at a loss of Rs 10.43 a litre.
Kerosene was being sold at a loss of Rs 16.78 per litre and LPG at Rs 220 per cylinder.
Due to the non-revision of retail prices of petroleum products, the under-recoveries has been estimated at Rs 57,000 crore by the oil marketing companies--Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation--in 2006-07.
UNI/RT PV KP1644