Petrol, diesel, LPG likely to become costlier soon

Petrol, diesel, LPG likely to become costlier soonPetrol, diesel and domestic cooking gas LPG is likely to become costlier soon after the monsoon session of Parliament concludes, a senior official from the Petroleum Ministry revealed.

Speaking on the condition of anonymity, the official said that the oil marketing companies are losing huge amounts on subsidised sales of their products, and that the government is waiting for Parliament to adjourn to give the companies green signal to increase the prices of their products.

The official also said that the Finance Ministry has told the Petroleum Ministry that no funds are left to subsidise petrol, diesel and LPG.

Speaking on the topic, the official said, "Fuel [price] hike is likely to take place soon. The government is waiting for Parliament to adjourn. The oil marketing companies are losing huge amounts. on subsidised sale."

Prices of petrol and diesel could be increased by Rs. 4 and Rs. 5 a litre, respectively, while LPG is expected to become costlier by Rs. 50 a cylinder. There is, however, no consensus yet on increasing the price of kerosene.

Hindustan Petroleum (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corp (IOC) are selling diesel, LPG and PDS kerosene at below-market prices and are thus suffering huge losses, thanks to subsidies set by the government. The borrowings of HPCL, BPCL and IOC have jumped from Rs. 1,28,272 crore on March 31 to Rs. 1,57,617 crore on June 30.