Murli Deora, Union Petroleum and Natural Gas Minister will meet Finance Minister Pranab Mukherjee on February 14 to decide on the possibility of fuel price hike. The OMC (Oil Marketing Companies) are incurring huge losses up to the tune of Rs45000-50000 crores. Rs 20000 crore subsidy support is given by government but rest is burdened by these companies. At present, petrol is being sold at a loss of Rs 4.72 a liter, diesel at Rs 2.33 per liter, kerosene at Rs 18.06 per liter and domestic LPG at a discount of Rs 287.59 per cylinder.

The government is facing stiff opposition from Trinamul Congress and the DMK to keep a lid on the prices of petrol, diesel and LPG. The government is concerned about the mounting oil subsidy bill but can’t risk pushing inflation.

As per sources Mukherjee and Deora were in favour of Rs 2-3 a liter hike in petrol and diesel prices and an increase of Rs 25 on a LPG cylinder.

Railway minister Mamata Banerjee and telecom minister A. Raja had opposed the move when the oil minister held talks with them yesterday. There are conflicts as allies fear that any price hike will affect masses & could make voters unhappy.