The government is considering a move that could raise the Petrol prices by Rs 16 - 17 a litre.

Petrol is currently being sold at a loss of Rs 16.34 a litre and diesel at Rs 23.49 per litre. Deregulating petrol price would mean that its prices would move in tandem with international prices.

The continuous hike in international oil prices touched an all time high fo 135 dollars a barrel last week. It has forced the government to press the panick button.

“One of the options being considered is deregulating petrol prices,” an official said. “The country’s preferred auto fuel diesel will, however, continue to be subsidised even though a marginal Rs 2-3 a litre hike in prices may be announced.”

The diesel will continue to be sold at a subsidised price.

Source: TOI