The Petroleum & Natural Gas Ministry has reportedly proposed to the Cabinet that prices of diesel, LPG cylinders and kerosene should be raised right away after the end of parliament’s monsoon session on September 7.

A senior official in the ministry said that a sense of urgency to increase prices of almost all fuel products was being felt by everybody right from the prime minister. The official added that financial situation of state-run oil companies was serious and the soaring fuel subsidy bills were aggravating the problem.

Speaking on the condition of anonymity, the official also revealed that the ministry would discuss the issue of putting a certain cap on number of subsidized cylinders that a household would be allowed to avail.

According to the proposed plan, every household will be allowed get four to six cooking gas cylinders at subsidized price, and they will have purchase any more cylinders at market price of Rs. 746 per cylinder. It is also being said that people who have more than Rs 50,000 monthly income will not be allowed to avail subsidy on LPG.

The ministry has also asked the cabinet to stop providing subsidized cooking gas to people who have more than Rs 50,000 monthly income

Petrol and diesel prices are expected to be raised by Rs 5 and Rs 4-5 a litre respectively.

As per an estimate, public sector oil and gas companies are suffering a heavy loss of Rs. 560 crore a day on sale of diesel and LPG at present.