<div>An increase in petrol, diesel, domestic cooking gas (LPG) and kerosene prices looks "imminent" after the finance ministry said it has no money to provide for fuel subsidy.<br /><br />"This (hike) is imminent. There is no question of holding back now," a top oil ministry official said on 4 September.<br /><br />In all possibility, prices may be increased after the current monsoon session of Parliament ends on 7 September.<br /><br />Diesel, domestic LPG and PDS kerosene rates have not been changed since June 2011 even though cost of production has soared 28 per cent. State-owned fuel retailers are losing Rs 560 crore per day on sale of diesel and cooking fuel, and are forced to resort to short-term borrowings to meet funds needed for importing crude oil (raw material).<br /><br />Borrowings of the three fuel retailers have shot up to Rs 1,57,617 crore at end of June from Rs 1,28,272 crore as on March 31.<br /><br />Besides, they are losing close to Rs 5 per litre on petrol, a fuel that was decontrolled in June 2010 but rates of which haven't moved in tandem with cost.<br /><br />"Finance Ministry says it is not left with funds to subsidise oil companies. Oil companies are jewels of India.<br /><br />They need to be saved at all cost. Governments come and go, but oil companies will be required to fuel the country," the official said.<br /><br />Diesel is being sold at a loss of Rs 19.26 a litre, kerosene at Rs 34.34 per litre and domestic LPG at Rs 347 per 14.2-kg cylinder.<br /><br />At current rate, the three firms are projected to lose Rs 1,92,951 crore in revenues in the financial year ending March 31, 2012.<br /><br />(PTI)</div>
