The prices of fuel is set to up in the country next month as state-run oil firms prepare to roll out the increase in prices.

India's state-run Oil Marketing Companies (OMCs) might be planning to announce an increase in the prices of fuel, petrol and diesel in the country as basket of crude oil import price crossed the $123 a barrel mark.

According to reports, the prices of petrol and diesel might be increased netween Rs 2 to Rs 4 a litre. According to Indian Oil officials, the oil companies are loosing Rs 465 core every day on the sale of diesel, petrol and kerosene in the country.

Senior officials in oil firms have said that they will look at the issue by the end of this month at time of closing the accounts. OMCs in the country are also demanding a compensation of about Rs 4,500 crore for keeping petrol prices below market rates since December.

Oil companies have loosing money by selling petrol in the country at a retail price that is lower than international market. The companies are losing on kerosene, diesel and LPG, which have set by the government. The rise will come amid continuing fall in the value of the rupee against the US dollar.