Oil prices hike next week: Oil ministry

New Delhi, May 31 (UNI) A price hike of Rs 2 to 3 per litre of petrol is imminent next week, Petroleum Minister Murli Deora said today after meeting Prime Minister Manmohan Singh.

The prices of LPG and kerosene are likely to be kept untouched so that common man is not burdened, said Mr Deora.

While Petroleum Ministry is pressing for reduction in duties, the Finance Ministry wants the existing duty structures to be retained.

At the heart of the matter is the issue that oil marketing companies have been incurring losses as they have not been allowed to pass on the entire burden of the global crude prices to the consumers.

Sources said the finance ministry is not in favour of issuing a second round of oil bonds to make good the losses. A demand for drastic reduction in duties structures also did not find favour with Mr Chidambaram.

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