New Delhi: The oil ministry has moved a cabinet note seeking a hike in diesel, cooking gas and kerosene prices and limiting supply of subsidised cooking gas cylinders to 4-6 per household a year.
The ministry proposal to the Cabinet Committee on Political Affairs (CCPA) says households with income of more than Rs. 50,000 per month be barred from getting subsidised LPG cylinders, oil ministry sources told IANS Wednesday.
Also on cards is an increase in petrol price on which the state-owned oil firms are losing nearly Rs.6 per litre.
The price hike may take place anytime after Friday.
"The situation is very grim and we can no longer afford to postpone a price hike.
"There is no suggestion on the quantum of increase in rates but we have analysed the situation that warrants an immediate price rise," the official said.
Diesel, domestic LPG and PDS kerosene rates have not been raised since June 2011.
Oil PSUs are currently losing Rs.560 crore per day on sale of diesel and cooking fuel.
"The projected oil subsidy bill for the current fiscal is close to 190,000 crore, while the actual subsidy for 2011-12 has come to Rs.138,571 crore," said the official.
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.
As per the ministry's proposal, every household would get only 4-6 LPG cylinders at the subsidised price of Rs.399 in Delhi and they will have to pay the market price of Rs.746 per cylinder for any additional requirement.
The three oil marketing companies, Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL) reported a combined revenue loss of Rs 47,811 crore on fuel sales in the first quarter of the current fiscal.
IOC reported the highest quarterly net loss by any Indian company at Rs 22,451 crore.
HPCL posted Rs 9,249 crore net loss in April-June, while BPCL reported a net loss of Rs 8,836 crore.