Oil Minister Jaipal Reddy today said a fuel price hike is unavoidable but can't say to what extent. He added that a cabinet note on fuel prices has been circulated.If the cabinet panel takes up the fuel price issue today some decision may be taken, he said.
India's state-run oil marketing companies rose after the minister said that the cabinet panel will meet later in the day to look into a potential hike in fuel prices.
BPCL was up 2.78 percent, HPCL was up 2.81 percent while IOC traded 1.43 percent higher. Oil companies have been pushing for a Rs 5 hike in petrol prices. They also want a hike in diesel, LPG and kerosene prices.
According to an IBN Live report, the Cabinet was awaiting UPA Chairperson Sonia Gandhi's return from her foreign trip to take a decision of the fuel price hike.
News of an impending increase in regulated fuels such as diesel and LPG has been doing the rounds for quite some time now. The Government has dragged its feet over this issue due to stiff political resistance. One has to see if it manages to muster enough courage today and goes ahead with a fuel price hike.