Asia Bizz: On March 19, 2012 India’s Finance Minister Pranab Mukherjee indicated that the government would work towards a rise in the petrol prices. The fuel price hike is expected after the budget session is over.

While talking to reporters, Mukherjee said that once the budget session comes to and end, then he will discuss with various chief ministers, leaders of the political parties and try to work out an overall mechanism. The finance minister added that a mechanism has to be framed out through which they will be able to deal with some of the crucial issues of which the collective support of all the stake holders are called for.

Mukherjee also stated that the burgeoning fuel subsidy bill is expected to cross Rs 40,000 crore during the current financial year.

The official figures have said that oil companies are losing Rs 13 per litre on diesel and Rs 28.67 per litre on kerosene and Rs 439.50 on each LPG cylinder sold to the households. The prices of petrol were decontrolled in June 2010, but the oil companies have been told not to go in for any further increase in the run up to the Assembly sessions.