Will there be a petrol price hike tonight?

Petrol prices could be hiked by as much as Rs 5 per litre by oil marketing companies (OMCs).

According to CNBC TV18, oil marketing companies are meeting the Petroleum Ministry today to discuss a hike in petrol prices.

Given that the political situation is so fluid, the UPA, weakened by election routs in Uttar Pradesh and Punjab, might be tempted to push through petrol price hikes tonight or in the next few days in the hope that it will be a done deal by the time various political parties figure out their next course of action.

[caption id=“attachment_236411” align=“alignleft” width=“380” caption=“Petrol isn’t the only oil product waiting for a price hike. Diesel and LPG are also in line for price hikes.AFP”]  [/caption]

Oil marketers last hiked petrol prices in September.

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Petrol prices were freed from government control in June 2010, but OMCs still do not have full freedom to fix prices at market rates.According to the CNBC TV18 report, OMCs have lost nearly Rs 1,500 crore on selling petrol in the current financial year.

Petrol isn’t the only oil product waiting for a price hike. Diesel and LPG (cooking fuel), both of which are subsidised by the government, are also in line for price hikes.

Experts estimate the total losses of OMCs on selling fuel (diesel, kerosene and cooking fuel) at subsidised prices at around Rs 1,40,000 crore for the current financial year.