Government has hiked the petrol prices by Rs 4 per litre and diesel by Rs 2 per litre to cut losses of oil companies in view of rising international crude.
Petroleum Minister Murli Deora discussed the necessity of raising fuel prices with party leaders and he is also reported to have sounded Prime Minister Manmohan Singh on the issue, sources close to the development said.
Public sector oil companies have seen losses on fuel sale widening to about Rs 170 crore (Rs 1.7 billion) per day on firming global oil prices and may end the fiscal with over Rs 49,000 crore (Rs 490 billion) in revenue loss.
Indian Oil, Bharat Petroleum and Hindustan Petroleum have seen losses on sale of petrol, diesel, domestic LPG and kerosene inflating from Rs 130 crore (Rs 1.3 billion) to about Rs 170 crore (Rs 1.7 billion) per day, an industry official said.
The hike would come into effect from midnight.
The ministry, however, clarified that there was no change in the prices of kerosene and LPG.
