Coming at a cost

New Delhi, Dec. 21: The government is considering a marginal rise in the prices of petrol and diesel.

Officials said the price of petrol could be raised by Rs 3 per litre and diesel by Rs 2 per litre.

However, the prices of LPG and kerosene would not be changed.

Apart from the marginal hike, the government could cut excise and customs duties or meet a greater proportion of the losses of oil companies through oil bonds.

It may even have a mix of these measures, the officials added.

A marginal hike fits with the global crude scenario where prices have cooled down to $90 per barrel from the record high of nearly $100.

Poll results for Gujarat and Himachal Pradesh will be out on Sunday, giving the government leeway to make changes without worrying about political consequences.

Besides low inflation is emboldening the government to make the common man bear some of the burden of the hike in the global price of crude oil.

The group of ministers on fuel prices is likely to meet in the first week of January to discuss prices.

State-owned oil marketing companies are selling petrol at a loss of Rs 8.74 per litre and diesel at a loss of Rs 9.92 per litre.