Given sky-rocketing crude oil prices, a fuel price hike is possible just ahead of Union Budget. Sources said that even if the Government expedites the entire process of fuel price hike, that could be completed only by first week of February.

The meeting of the Group of Ministers (GoM) on fuel prices is scheduled on January 18. Earlier, the meeting was scheduled on January 4. Since this GoM is not an empowered one, its decision is subject to approval by the Cabinet. That would take at least a week.

Sources said that before taking a decision on the matter, the GoM would have to consider the recommendations of the finance ministry. A meeting of all secretaries of the finance ministry was held on Monday to discuss the issue of dealing with subsidies. Therefore, the ministry of finance would also take some time to come up with its views regarding a fuel price hike.

Earlier, the finance minister was scheduled to meet his secretaries on December 18 to discuss the subsidies issue. But the meeting was postponed. This clearly indicates that the finance ministry is not in a hurry to take any decision in this regard.

It is not clear now when the finance minister would call another meeting of its secretaries to discuss the issue. It is also not clear that how many meetings would be conducted for a the final view on fuel subsidies.

Oil ministry sources said that it would not be possible for the GoM to wrap up this matter in just one meeting, as Indian Oil Corporation Limited (IOCL) would make a presentation on under-recoveries on sale of petrol and diesel. The other oil marketing companies including, Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL), too want to make presentations on under-recoveries before GoM the in order to build a strong case for a fuel price hike.