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A decision on raising diesel prices by Rs 3-5 per litre, kerosene by Rs 2 and LPG by up to Rs 50 per cylinder will be taken after UPA Chairperson Sonia Gandhi returns from US, top government officials said today.
"It is a political decision. The Congress Core Group will have to first decide on it before it can be considered by the Cabinet Committee on Political Affairs (CCPA)," an official said.
Sonia Gandhi left for the United States on September 2 for a medical check-up and is expected to be back in about a week.
The official said on her return, the Congress core group can meet to deliberate on the price hike that has become essential in view of over 20 per cent dip in rupee value against US dollar this fiscal, making oil imports costlier.
Another official said no proposal for a price hike has so far been moved for the consideration of the Cabinet.
"The window for raising prices is only till September after which poll process in states like Delhi and Rajasthan will start," he said, adding that a decision on raising prices was expected in couple of weeks time.
Oil Minister M Veerappa Moily said there is no proposal to raise prices as of today but refused to make the same commitment about the future.
"Today, I don't have any proposal to hike prices. We live in a dynamic economy, no one can say this will be the price after a week or 10 days. Today, I have not decided," he told reporters here.
Moily had on August 30 written to Prime Minister Manmohan Singh seeking urgent steps to tackle a record Rs 180,000 crore of losses arising from plunging rupee and surging oil rates.
Without a price increase, the government will have to shell out a record Rs 97,500 crore to subsidise diesel and cooking fuel.
