New Delhi: The recent spurt in crude oil prices may translate into a hike of Rs 2 per litre in domestic petrol prices and Re 1 per litre hike in diesel prices.

Crude prices have spiked to recent highs of $ 29 a barrel in wake of reports that US was preparing to strike Iraq. "If the trend continues, the next price revision due on September 15 could see a steep hike in petrol and diesel prices," official sources said.

While the August 31 increase in petrol and diesel prices by 22 paise per litre and 29 paise per litre respectively were based on average diesel price of $ 27.02 per barrel and petrol prices of $ 26.80 per barrel, international prices have appreciated by 3-7 per cent.

During the first 10 days of this month, average diesel prices have been $ 28.12 a barrel (3.7 per cent increase) and petrol prices averaged $ 28.29 a barrel (7.46 per cent increase), sources said.

Petrol in Delhi is currently priced at Rs 29.20 per litre while a litre of diesel costs Rs 18.34.

After the dismantling of administered pricing mechanism (APM), state-owned retailing firms fix petrol and diesel prices every 15-days based on the average price of that fortnight.

Sources said Finance Ministry will consider cuts in excise and customs duties later this month if the current trend in global crude oil prices continues.

Reduction in duties on crude and product would reduce the impact of spurt in international prices on domestic consumers.

PTI