Petrol prices likely to head northward next week

The government is also under intense pressure to raise cooking gas, kerosene and diesel prices.

According to Indian Oil Corporation sources, the petrol price hike could be in the range of Rs 1.5 to Rs 2 a litre. Under the present deregulated regime, oil marketing companies only have a free hand in fixing petrol prices. The pricing of diesel, domestic LPG and kerosene continues to be  under government control. According to latest estimates, state-owned oil marketing companies are incurring a loss of Rs 4.71 per litre on diesel, Rs 272.19 per 14.8 kg on LPG cylinder and Rs 17.72 per litre on kerosene.

The Empowered Group of Ministers on Oil Prices  headed by Finance Minister Pranab Mukherjee is likely to meet next week to discuss the issue.