Oil price hike next week, says Deora

Despite resistance from the Left, the Manmohan Singh government has decided to hike the prices of petrol and diesel by next week.

"The government will come out with a small increase in the prices of petrol and diesel by next week which everybody will have to bear," said Petroleum Minister Murali Deora, on the sidelines of BPCL's lube oil base stocks (LOBs) project inauguration.

The petroleum marketing companies in the public sector were struggling for survival in the previous financial year owing to high crude prices in the international market.

Oil marketing companies sought a 25-per cent rise in prices, but sources close to the development said the government might allow only a 5-8 per cent increase.

The government has not raised fuel prices since last September, hurting public companies such as Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.