Though the domestic prices of petrol and diesel should be raised by Rs 2.25 and 72 paise a litre, respectively, to align them with the import parity prices, oil refining and marketing companies are reconciled to a much smaller hike. These companies are learnt to be pressing for at least 71 paise per litre increase in petrol and diesel prices. But the petroleum ministry wants a smaller increase.
Petrol and diesel prices are scheduled to be revised from the midnight of September 15-16. The oil companies had agreed to a smaller increase in prices in view of the petroleum ministry in talks with the finance ministry for a 2 per cent cut in excise duties on petrol and diesel.
Union petroleum minister Ram Naik is building up a case that the duty cut will be revenue-neutral because the loss of revenue will be offset by the rise in prices.
