Fuel prices are likely to rise if the government gives up its control on fuel pricing on June 7.

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Besides Mukherjee, the EGoM on fuel prices also includes Petroleum Minister Murli Deora, Agriculture Minister Sharad Pawar, Chemical and Fertiliser Minister M K Alagiri, Railway Minister Mamata Banerjee, Road Transport Minister Kamal Nath and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

For petrol and diesel prices to be freed from government control, rates would have to be raised by over Rs 6 a litre.

Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum lose Rs 255 crore (Rs 2.55 billion) a day by selling fuel below cost.

They may end the fiscal with a Rs 90,000-crore (Rs 900 billion) revenue loss.

They currently sell petrol at a loss of Rs 6.07 a litre, while the loss is Rs 6.38 per litre of diesel, Rs 19.74 per litre of PDS kerosene and Rs 254.37 per 14.2-kg LPG cylinder.