New Delhi: The prices of diesel, kerosene and LPG are likely to be hiked, according to sources. Sources say diesel prices are likely to be hiked by Rs 4 to 5 per litre, while the price of LPG is expected to be hiked by Rs 50 per cylinder. Oil companies will take the final decision on the price of petrol.
According to sources, Finance Minister P Chidambaram and Petroleum Minister Jaipal Reddy have argued in favour of rising the fuel prices as subsidy bill is untenable and will affect international ratings.
The Finance Ministry has argued that future reform legislations will have to be put on hold if prices are not increased, say sources.
The Congress party and its allies have been sounded out. Sources say that the Trinamool Congress is likely to oppose the fuel price hike and the Congress is opposed to kerosene price hike.
The Cabinet Committee on Political Affairs will meet on Tuesday and is likely to discuss the fuel price hike. The Cabinet was awaiting UPA Chairperson Sonia Gandhi's return from her foreign trip to take a decision of the fuel price hike.
The Oil Ministry had circulated a Cabinet note on fuel price hike. Finance minister P Chidambaram was reportedly pushing for a hike in fuel prices.
Oil companies have been pushing for a Rs 5 hike in petrol prices. They also want a hike in diesel, LPG and kerosene prices.