Petrol prices may be hike by Rs 5 per litre from next month

State-run oil marketing companies plan to raise petrol prices by Rs 5 a litre from next month after they get an informal nod from the oil ministry, industry and government officials said. The decision is likely to be taken on Saturday when oil firms meet for a fuel price review.

"We are incurring a loss (revenue) of about Rs 7 per litre on petrol. We have to raise its price by at least Rs 5. But the government owns the companies so we have to wait for its green signal," said a senior executive of a state-run refinery. Government officials, however, said oil companies might not be allowed to raise petrol prices considering the volatile political situation during the Budget session of Parliament.

"The UPA government, which depends on support from diverse political parties, can't risk the passage of the Finance Bill. It can bite the bullet after the Bill is passed in May," said an official requesting anonymity.