Petro price hike on the cards: FM

Stressing that there was no alternative except to raise the prices of petroleum products, Union Finance Minister, P Chidambaram, has said the oil companies will incur a loss of Rs 30,000 to Rs 40,000 crore (Rs 300 to 400 billion) during this fiscal, if the present trend of spiraling crude oil prices continued for some more months.

When the UPA government came to power more than a year ago, the crude oil prices, which was around $28 per barrel, has now shot up to $67 a barrel.

Though the UPA government was exploring various other options, "There is no alternative but to hike the prices of petroleum products and people have to share a part of the burden," he said on Monday.

He said the World Bank had recently agreed to sanction Rs 13,500 crore (Rs 135 billion) for developmental projects.

The amount would be spent on irrigation, drinking water, roads and other sanitation schemes in the country, he said adding that the government had asked for more funds for the purpose.

On divestment, he said talks were in progress with the left parties on finding a solution to the divestment of public undertakings.