The prices of diesel, cooking gas and kerosene will be increased next week. Prices of both cooking gas and kerosene have not been increased since June last year, although the cost of production has jumped nearly 28 per cent.
Hindustan Petroleum and Bharat Petroleum are currently losing Rs.19.26 a litre on diesel and Rs.347 per cylinder of domestic cooking gas, translating to a daily loss of Rs 550 crore on sale of these sensitive petroleum products below cost price.
State-owned oil marketing companies (OMCs) retailers are losing Rs.560 crore per day on sale of diesel and cooking fuel, and are forced to resort to short-term borrowings to meet funds needed for importing crude oil.
The prices of petrol, being a deregulated commodity is likely to be hiked immediately after the monsoon session of the Parliament ends on Friday. The Indian basket of crude oil has increased by $11 a barrel, since the petrol prices were last revised on July 24, thus necessitating the hike.