New Delhi: The oil ministry has moved a Cabinet note seeking immediate hike in diesel, cooking gas and kerosene prices and limiting supply of subsidised LPG cylinders to 4-6 per household in a year.

The ministry’s proposal to the Cabinet Committee on Political Affairs (CCPA) also includes barring households with income of more than 50,000 per month or 6 lakh in a year from getting subsidised LPG cylinders.

A file photo of LPG cylinder godown, New Delhi.Photo: Ankit Agrawal

Also on cards is an increase in petrol price on which the state-owned oil firms, despite having freedom to raise rates, are losing close to Rs6 per litre.

The price hike may take place anytime after Friday.

“The situation facing us is very grim. We can no longer afford to postpone a price hike," the official said.

“We have not recommended the quantum of increase in rates but have analysed the situation that warrants an immediate price rise," he added.

Diesel, domestic LPG and PDS kerosene rates have not been changed since June 2011 even though cost of production has soared 28%.

Oil PSUs are losing Rs560 crore per day on sale of diesel and cooking fuel at present, and are forced to resort to short-term borrowings to meet funds needed for importing crude oil (raw material for making fuel).

Close