Oil companies might soon get some relief in the form of a fuel price hike. This because the finance ministry has virtually rejected the oil ministry's proposal of a duty rejig.
Sources say that petrol and diesel prices could be hiked by as much as Rs 4. Also on the cards is a possible hike in cooking gas prices by Rs 50. The government is likely to take a decision by the third week of May.
The oil ministry had proposed halving customs duty on crude as well as removing the ad valorem element in excise duties.
Sources say the finance ministry is not in favour of duty cuts. Petroleum Minister Murli Deora is likely to meet the prime minister either on Friday or on Monday to sort out the issue.
Deora said, "We have brought it to his attention, and he is very considerate and kind, we are working out some solution to this."
The oil ministry has also sought more oil bonds from the finance ministry.
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