With the Parliament session over, the UPA II government is likely to take a call on raising of the diesel price on December 22 when the Empowered Group of Ministers (EGoM) meet. However, petrol prices are likely to be hiked in a day or two by Re. 1 to Rs. 1.50 a litre.
The officials of Petroleum and Natural Gas Ministry said petrol was de-regulated in June giving freedom to the oil marketing companies (OMCs) to revise their prices fortnightly. A senior official said that “The petrol prices have been revised four times in less than six months. Another hike is in the offing within a day or two as the OMCs are incurring losses in sale of petrol and diesel”
The Oil MArketting Companies (OMCs) are losing around Rs. 2 per litre on sale of petrol. The official said international crude oil prices were around $72-74 per barrel in June when the government freed petrol price. Since then crude has climbed to touch $90 a barrel now.
The Empowered Group of Ministers, headed by Union Finance Minister, Mr.Pranab Mukherjee, is likely to decide on raising the prices of diesel.
