New Delhi: An Empowered Group of Ministers (EGoM) is likely to meet on Friday to discuss a hike in diesel and LPG prices.
According to sources the price of diesel is expected to shoot up by Rs 5 per litre and LPG cylinder prices by Rs 50 per cylinder.
A news website quoting the Ministry of Petroleum and Natural Gas reported that the under-recovery for oil companies, as on May 16, on every domestic cylinder is Rs 480. The daily under-recovery for the oil marketing companies, on diesel, LPG and kerosene, is Rs 509 crore, the website said.
Diesel is currently sold at a loss of Rs 15.35 a litre, kerosene at Rs 32.98 per litre loss and oil firms lose Rs 480on sale of every 14.2-kg domestic LPG cylinder.
The government had decontrolled petrol prices in June 2010 but rates were last increased on November 4 last year. This despite oil prices rising by 14 percent and 7 percent fall in value of rupee against the US dollar.
Prices of diesel, kerosene and cooking gas were raised in June last year.
Considering the huge losses that the oil marketing companies (OMC) incur owing to such under-recoveries, it is expected that OMCs might push through the hike in prices.
State-owned oil firms have already hiked petrol prices by Rs 7.54 per litre with effect from Wednesday midnight. This is the steepest hike in petrol prices ever, the previous increase being Rs 5 per litre.
With Agencies inputs
First Published: Wednesday, May 23, 2012, 22:57