Oil price hike may be deferred to next week

Such a move would provide "ammunition" to the main opposition party on a platter, according to an informed source.

The delay could also be because there is no consensus within the government on the hike and the other components of the relief package for the cash-strapped oil companies who are bearing the brunt of the fuel subsidy.

 

"No decision has been finalised yet," said a senior minister of the government.
 
However, all indications are that the hike is likely to be "moderate" to minimise the pain to the common man as well as to limit inflationary tendencies.

Moderate hikes are of little help to the oil marketing companies whose under-recoveries