A Rs two a litre increase in petrol and Re one per litre hike in diesel prices is being contemplated but a duty rejig to minimise impact of high international crude oil prices looks unlikely. Several quarters within the ruling UPA alliance were opposed to even a marginal auto fuel price increase and so the issue has been listed before CCPA instead of the usual Cabinet Committee on Economic Affairs (CCEA).

Petrol and diesel price hike has been on cards since October-end when international crude oil prices touched record high, but political compulsions have led to its postponement several times. The source said the government may raise the quantum of oil bonds to be issued to state-run retailers to partly compensate them for selling auto and cooking fuel below cost.

At present, 42.7 per cent of the under-realisation on petrol, diesel, LPG and kerosene is met by the government through issue of oil bonds. This percentage may increase, the source said. Another 33 per cent is borne by up upstream companies like ONGC and GAIL, while the remaining has to be borne by the retailers - Indian Oil, Bharat Petroleum and Hindustan Petroleum. The total under-realisation this fiscal is estimated at around Rs. 71,808 crores, he said.