Move to raise prices of cooking gas prices upto Rs 100 per cylinder

After a hike in petrol prices, the oil ministry is considering to raise cooking gas prices upto Rs 100 per cylinder.

Media reports have quoted the oil ministry as saying that the hike is necessary following 66 per cent jump in crude price in the international market.

The rise in global prices is draining funds to state-run oil firms.

The government is expected to take a call on the issue this week after weighing the political implications of a hike against the need to shore up the finances of companies such as Indian Oil Corp , which plans to raise Rs 20,000 crore from a public issue in 2011, media reports said on Monday.

Global price of LPG has gone up due to winter demand, and consequently the subsidy on every cylinder is set to jump to Rs 367 per refill from Jan 1, which is more than the retail price of Rs 345.35 in the capital.

The oil ministry will seek the approval of the empowered group of ministers (EGoM), which is also expected to consider higher diesel rates, when it meets on Wednesday.

India, the largest consumer of LPG in Southeast Asia, meets its domestic demand of 14 million tonnes, by importing about 3 million tonnes of cooking gas.

The oil firms raised petrol prices by about Rs 3 per litre last week.