The government is likely to decide this week on a hike of Rs 2 to Rs 3 a litre in the prices of petrol and diesel but spare kerosene and cooking gas prices from any increase.
The petroleum ministry will prepare a note for consideration of the Cabinet, possibly on Thursday or Friday, sources said on Tuesday. However, there may not be any duty cut in fuel, an alternative suggested by the Left parties, the sources said.
Petroleum Minister Murli Deora called on Finance Minister P Chidambaram on Tuesday to discuss the oil scenario in the wake of spurting internationl crude prices and its effect on the domestic oil companies.
The finance ministry, during the meeting, remained firm on its earlier position of not considering any duty cut, the sources said.
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