The petroleum ministry on Wednesday made out a strong case for increasing the fuel prices by up to Rs 10.43 a litre in petrol and Rs 114.45 per cylinder of cooking gas to save oil companies from a massive financial loss with the Left parties opposing the move.
They instead suggested cut in duties and CNG pricing policy to mitigate the surging international oil prices.
In a presentation to Left leaders including Sitaram Yechury of CPM and Gurudas Dasgupta, the oil ministry said prices of petrol need to raised by Rs 9.33 per litre, diesel by Rs 10.43 per litre, kerosene by Rs 17.16 per litre and LPG by Rs 114.45 per cylinder if prices are to be brought in parity with imported costs.
The oil ministry said without the price hike, oil companies would suffer a revenue loss of Rs 73,512 crore (Rs 735.12 billion) in 2006-07 fiscal.
Sources said Left leaders wanted customs duty to be halved and a specific excise duty levied on products.