New Delhi, May 24
After taking a tough stand on the reservation issue, the UPA government is gearing up to announce a hike in petrol and diesel prices in the next few days after consulting coalition partners and the Left parties.

Indications are that there may be no hike in kerosene and LPG prices to appease the Left parties. However, petrol and diesel prices are likely to be increased by Rs 4 per litre and Rs 3 per litre, respectively.

Sources said Petroleum Minister Murli Deora would meet Prime Minister Manmohan Singh after he returned from Srinagar, besides consulting Finance Minister P. Chidambaram, party colleagues and alliance partners to evolve a consensus on the issue.

He has already held consultations with the Left parties, which have opposed any such hike, while asking the government to review the duty structure to compensate the oil marketing companies.

The oil marketing companies have warned that they would be bankrupt soon if the government failed to pass on the hike in the international crude oil prices, now crossing $ 70 a barrel.

According to estimates by the oil marketing companies, petrol price needed to be increased by Rs 10.55 a litre, diesel by Rs 9.88 a litre, LPG by Rs 120 per cylinder and kerosene by Rs 16.28 per litre.

The Petroleum Ministry had been working for some time to find an acceptable price hike formula to save oil companies from bankruptcy.

Deora held a series of meetings with Left leaders in the past few days and both sides agreed to keep prices of LPG and kerosene unchanged. He had met Finance Minister P. Chidambaram and Prime Minister Manmohan Singh earlier also.

Deora is also expected to brief Congress president Sonia Gandhi in the next few days to apprise her of the oil scenario before a decision is taken by the government.

The prices of petrol and diesel were last revised in September, 2005.