There should be an increase of Rs 4 and 2 per litre in petrol and diesel prices respectively to moderate the impact of high international crude oil prices on state-run oil firms.

The Group of Ministers on fuel headed by External Affairs Minister, Pranab Mukherjee, is expected to meet later this month. This will be followed by a meeting of the Cabinet and increase in price will likely in first week of February.

“The GoM on food  meeting will held on January 8. The GoM on fuel is likely to meet very soon after that,” Petroleum Secretary, M S Srinivasan, told reporters in New Delhi.

He said a moderate increase in petrol, diesel’s  prices was likely, but refused to speculate on the quantum of increase. The GoM has not met even once since its constitution in November.

Sources which are close to the Congress party, which is heading the UPA coalition government, said an increase of Rs 4 in petrol and Rs 2 in diesel was being considered.