Saturday, December 22, 2007

India to decide on fuel price hike in Jan

MUMBAI: India may increase fuel prices moderately next month, the first since June last year, following a meeting of ministers in the next two weeks, petroleum secretary M.S. Srinivasan was quoted by newspapers as saying on Saturday. "

Be prepared for a modest or moderate hike in the prices of petrol and diesel, after a meeting of the group of ministers in the first week of January," Srinivasan told reporters in the southern city of Coimbatore.

Newspapers speculated that the increase may be up to 2-3 rupees per litre of diesel and petrol. A surge in global crude oil prices has left state-run oil companies such as Indian Oil Corp and Hindustan Petroleum Corp Ltd with millions of dollars a day of losses, as they have to sell fuel at state-set prices to fight inflation and protect the poor.

India last raised fuel prices in June last year but has since then rolled back the increase in two stages. Global crude benchmarks have jumped by about 40 percent this year.

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