Fuel hike: Cabinet decision on Wednesday

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New Delhi, June 3:: The Cabinet will meet on Wednesday to decide on raising fuel prices that have been necessitated by the relentless rise in international crude oil prices.

"We are still discussing the issue and a Cabinet meeting is scheduled for tomorrow," External Affairs Minister Pranab Mukherjee told reporters on the sidelines of an industry event in New Delhi on Tuesday.

He, however, refused to comment any further on the Cabinet agenda.

With consensus on raising petrol, diesel and domestic LPG prices still eluding, the Cabinet Committee on Political Affairs (CCPA) will meet early Wednesday morning.

If a consensus is hammered at the CCPA meeting, the Cabinet Committee on Economic Affairs (CCEA) may be convened, Government sources said.

Prime Minister Manmohan Singh yesterday indicated of an imminent fuel price hike when he said consumers cannot be fully insulated from the impact of rising global oil prices.

With the surge in global oil prices leaving a Rs 2,25,040 crore revenue deficit with oil companies, Singh has over the past one week held several rounds of consultations with senior ministers and UPA Chairperson Sonia Gandhi but a consensus has eluded the government.

Petroleum Minister Murli Deora, who has been pushing for a Rs 10 a litre hike in petrol, Rs 5 per litre increase in diesel and Rs 50 per cylinder raise in LPG prices, has readied a note for consideration of the Cabinet.