The government yesterday announced a hike in diesel price by Rs 5 a litre and restricted availability of cooking gas cylinders per family to six per year.
The decisions, taken by the Cabinet Committee on Political Affairs (CCPA) at a meeting presided over by Prime Minister Manmohan Singh, will come into effect from midnight.
The panel, comprising of ministers from allies of the UPA, was expected to meet on Tuesday evening, but the meeting was postponed and finally held yesterday.
Diesel and cooking fuel prices have not been revised since June 2011 even as oil firms sell deregulated petrol at a price which is Rs 6 per litre less than its actual cost.
State-owned oil firms are losing around Rs 550 crore per day on the sale of regulated diesel and cooking fuels and around Rs 16 crore per day on petrol.
Oil Marketing Companies (OMCS) have been selling diesel at a loss of Rs 19.26 per litre, kerosene at a loss of Rs 34.34 per litre and domestic LPG at a loss of Rs 347 per 14.2-kg cylinder.