From correspondents in Delhi, India, 12:01 PM IST

Transport fuel prices in India are set to be hiked following a decision taken at a marathon meeting of the Cabinet Committee on Political Affairs, presided over by Prime Minister Manmohan Singh here Wednesday.

'The cabinet has approved the price hike. The quantum of the hike will be communicated to you shortly,' a senior official in the petroleum ministry said outside the official residence of the prime minister, at 7, Race Course Road here.

'The prime minister is also expected to explain to the nation why the price hike was inevitable. Oil marketing companies have been bleeding since the cost of oil has gone up but the retail prices of petrol and diesel had remained the same,' he added.

Prices of both petrol and diesel are expected to go up following the decision taken Wednesday morning after the meeting that lasted more than two hours.

A limit is also expected to be set on the number of cooking gas cylinders that would be available to each household at subsidised rates, sources said.

(Staff Writer, © IANS)