New Delhi: Government is considering a hike in diesel prices to help state-run marketing firms cushion the blow of higher crude oil prices, the oil minister said on Tuesday.
The oil firms would also raise petrol prices by Rs2.95 per litre this week, oil companies sources told Reuters.
India ended state controls on pricing of petrol in June and raised prices of diesel, cooking gas and kerosene. It also promised to eventually end the curbs on diesel prices.
“EGoM (Empowered Group of Ministers) will take a view on this. We are trying to ensure that the price hike is minimal,” oil minister Murli Deora told reporters, referring to a meeting of a panel of ministers.
Deora said a sharp rise in crude oil prices had exacerbated the need to raise domestic diesel prices.
On Tuesday, global crude oil prices steadied near $88.50 a barrel.
Last week, oil secretary S. Sundareshan said oil marketing companies were losing Rs4.80 (10 US cents) in revenue for every litre of diesel sold.