NEW DELHI, June 1: India will hike petrol and diesel prices on Monday to cut the losses of state oil firms, which have not been allowed to raise prices since March despite a hike in global prices, officials said.

“We will take a final decision to hike prices on Monday,” Petroleum Minister Ram Naik told reporters after a two-hour meeting with Finance Minister Yashwant Sinha.

Sinha said the government would also cut excise duties on petrol and diesel so that oil firms could improve their margins without a steep hike in prices.

“Modalities are being worked out and a decision is likely on Monday,” Sinha said.

India’s oil retailing sector is controlled by state-run firms — Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp — which enjoyed a monopoly for over two decades until April 1 this year.—Reuters