The Cabinet Committee on Political Affairs (CCPA) is most likely to announce an increase in prices of petrol, diesel, cooking gas and kerosene in the country.
The CCPA is expected to meet in a scheduled meeting on Tuesday. The prices of Diesel, domestic LPG and Kerosene within the Public Distribution Centre, have not been changed since June of 2011. The cost of these fuels has increased by 28 percent during the same time period.
The state run oil marketing firms are incurring a loss of more than Rs 5 per litre on sale of petrol. Diesel is being sold at a loss of Rs 19.26 a litre, kerosene at Rs 34.34 per litre and domestic LPG at Rs 347 per 14.2-kg cylinder in the country.
The government has already deregulated the pricing of petrol in the country but oil firms take `advice' from the oil ministry before setting the prices. Experts say that increasing the prices of petrol is not enough as when the oil companies are burdened with lower prices in domestic market and higher crude prices, the government is also forced to pay subsidy bill.
"I have circulated terrible facts (about prices to Cabinet). Subsidy burden is very high... there is no escaping the very difficult and painful part of taking a decision on petroleum prices," Oil minister Jaipal Reddy said.
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