The government’s plans to reign in petroleum subsidies to plug the fiscal deficit next financial year are in jeopardy, as a whopping Rs 2.13 lakh-crore revenue loss is expected at the current levels of global crude oil prices and domestic retail prices of controlled products.

Non-revision of diesel, LPG and kerosene prices, firm crude oil prices and a weak rupee may combine to foil Finance Minister Pranab Mukherjee's subsidy-reduction plans.

After a steep hike of Rs 50 on the prices of each cooking gas cylinder last month, another increase of Rs 4 has been done earlier this month owing to an increase in a dealer

The government is planning to cap sale of subsidised cooking gas (liquefied petroleum gas) cylinders to each household in a phased manner, while putting in a mechanism for direct transfer of subsidy to the intended beneficiaries.

In a move that will give the better and cleanear environment agenda a boost, the reach of Euro-IV fuel (diesel and petrol) will be expanded to seven more cities in the current financial year. This less polluting fuel was launched about a year ago in 13 cities.