Cabinet note ready for petro price hike

The government has prepared a cabinet note proposing a mix of measures including fuel price hike, change in duty structure and issue of oil bonds to bail out public sector oil marketing companies.

These PSUs have been suffering from huge under-recoveries due to the rise in international crude price.

The proposal may be taken up when the union cabinet meets this week, Petroleum Minister Murli Deora said after meeting Finance Minister P Chidambaram today.