New Delhi: The Congress core group will meet on Friday to decide on a possible hike in oil prices. According to sources, diesel price may be hiked by Rs 3 per litre after the monsoon session ends.
This comes after Finance Minister P Chidambaram and Prime Minister Manmohan Singh conveyed to the party that subsides will have to be controlled further.
Petroleum Minister M Veerappa Moily on Thursday met Finance Minister P Chidambaram to discuss possible solutions including Rs 3-4 per litre hike in diesel prices and cut in duties.
The government had in January allowed oil companies to raise diesel rates by up to 50 paise per month until losses on the most-consumed fuel in the country are wiped out. However the oil companies feel that a 50 paise hike is insufficient and there should be a higher, one-time increase to cover for the fall in the rupee.
The price of diesel was last increased on August 1, when prices in Delhi went up by 56 paise to Rs 51.40 per litre.
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