New Delhi: The United Progressive Alliance government is near unanimous on a hike in fuel prices.
Government sources have told CNN-IBN that petrol prices could go up by Rs three a litre. Sources added that the hike was decided after a Cabinet meeting attended by Prime Minister Manmohan Singh, Union Petroleum Minister Murli Deora, Finance Minister P Chidambaram and UPA Chairperson Sonia Gandhi on Thursday.
Even though the meeting remained inconclusive there is near unanimity on the rise in petrol price. However, there is a little bit of reluctance on the part of Finance Ministry.
Moreover, there has been no consensus on raising diesel prices.
Earlier, Deora had indicated in an interview to CNN-IBN that price hike was imminent.
He said there has been an "unprecedented rise" in fuel prices and the Government had to find solutions.
"And the only solution is that more money has to be realised, so that oil companies can buy the product which they are selling," said Deora.
"The Government has to come to the rescue (of state oil companies) - either give them some more subsidy or allow them the price rise; something has to be done. I'm sure tomorrow (Friday) we'll be able to find a solution to this."
"We are trying to see that all PSUs (Indian Oil, Bharat Petroleum, Hindustan Petroleum) are all galvanised to face the situation. Till now hardly there is a problem and there is no question of any rationing. I would appeal to the people to please corporate with the authorities," said Deora.
On Wednesday, the Indian Oil Corporation warned that its stocks of diesel would last only till September. And on Thursday, Hindustan Petroleum Corporation Limited said it can sustain operations for another two to three months.
(With inputs from Abhijit Neogi)
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