New Delhi: Petrol and diesel prices are likely to be hiked by Rs 2 a litre and Re 1 per litre respectively after the current monsoon session of Parliament ends next week.

Petroleum Ministry has moved a Cabinet note seeking hike in prices of petrol, diesel, PDS kerosene and domestic cooking gas LPG in line with the rise in international crude oil prices. But it has not specified the quantum of hike, leaving it for the Cabinet to decide, officials said.

Currently, petrol is being sold at a loss of Rs 2.79 per litre while diesel is priced Rs 4.65 a litre below the cost. Oil companies suffer a loss of Rs 15.50 on sale of every litre of kerosene and Rs 178.15 on sale of every LPG cylinder. Officials said given the political sensitivity of mass-consumed cooking fuels LPG and kerosene, the hike may be restricted only to petrol and diesel.

State-run Indian Oil, Bharat Petroleum and Hindustan Petroleum will together lose Rs 52,452 crore in revenues this fiscal year if fuel prices are not raised in line with cost. Petroleum Ministry has projected a revenue loss of Rs 16,120 crore on kerosene, Rs 11,088 crore on domestic LPG, Rs 6,682 crore on petrol and Rs 18,562 crore on diesel in 2007-08.

A Re one per litre hike in petrol price would give Rs 607 crore additional revenue during the remaining seven months of the fiscal. A similar hike in diesel would give Rs 2,479 crore while Rs 659 crore on kerosene. A Rs 10 per cylinder hike in LPG prices would generate Rs 403 crore. Officials said the Ministry has suggested that government bear half of the remaining under-realisation after the hike through subsidy and oil bonds, while the balance would be met from upstream firms like ONGC.