Fule price hike in near future not ruled out, say govt sources

An increase in petrol and diesel prices in the near future is not ruled out, government sources said on Friday, as losses mount from a four-year-old freeze in retail rates despite sharp rise in global crude oil prices.
International crude oil prices this week climbed to a four-year high of USD 126 per barrel before cooling down slightly, but remained above USD 110 a barrel as ship transits through the Strait of Hormuz remained restricted and US and Iranian leaders traded barbs amid stalled peace talks.
Government sources said the possibility of a petrol and diesel price hike in the near future is not ruled out.
Analysts had earlier flagged the possibility of price increases of Rs 25-28 per litre after the end of polling for assembly elections in West Bengal on April 29.
Last week, a senior oil ministry official told a news briefing that OMCs were incurring losses of about Rs 20 per litre on petrol and roughly Rs 100 per litre on diesel.