With the Parliament session over, the UPA II is likely to take a call on raising 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.
Petroleum and Natural Gas Ministry officials said petrol was de-regulated in June giving freedom to the oil marketing companies (OMCs) to revise their prices fortnightly. “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,'' a senior official said.
The OMCs are losing around Rs. 2 a litre on sale of petrol. The official said international crude oil prices were around $72-74 a barrel in June when the government freed petrol price. Since then crude has climbed to touch $90 a barrel.
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The EGoM, headed by Union Finance Minister, Pranab Mukherjee, is likely to decide on raising diesel prices.