New Delhi: Prices of petrol and diesel may have to be increased again by Rs one and 50 ps respectively this month, as domestic prices of the two auto fuels are still lower than the import parity price.

"The Rs 2.50 per litre increase in petrol price, Rs 1.50 per litre hike in diesel prices and the two per cent cut in excise duty on the two transport fuels is not sufficient to cover the cost of crude," industry sources said.

While the global crude oil price had been benchmarked at 24 dollars a barrel at the time of tariff review and price increase last week, the average price of May imports is around $ 26 a barrel on CIF (Cost, Insurance And Freight) basis.

The May average price of Indian basket of crude, which comprises of Oman-Dubai crude oils of sour grade and Brent of sweet grade in the ratio of 58:42, was $ 25.17 per barrel on FOB basis, sources said adding, to this is added the insurance and freight cost.

However, state-run oil refining and marketing companies, who have been given a free hand to charge import parity price and revise retail selling prices on fortnightly basis, may not be allowed to increase petrol and diesel prices so soon.

"Petroleum Ministry has asked the oil Public Sector Units (PSU) to observe restrain for sometime and not effect price changes too often. Last week's price increase is yet to sink in and consumers need some more time to cope with such adjustments," they said. PTI