An Empowered Group of Ministers is likely to meet next week to decide on increasing the prices of petroleum products like diesel, LPG and kerosene.
Finance Minister Pranab Mukherjee, quoted, "A decision will be taken on raising prices of these items when the EGoM meets next week."
As per the finance ministry, when Government hiked the petroleum products prices last time, crude oil prices in the international level were at $68 per barrel which has now grown to $110 per barrel.
It has till now offered subsidized price of Rs. 26 on every litre of kerosene, Rs. 16 on a litre of diesel and Rs. 320 per cylinder of LPG, compelling the oil marketing companies to incur huge losses.
But to achieve the Government set fiscal deficit target of 4.6 per cent for the current financial year, another fuel price hike has become the need of the hour.