Prices of petrol and diesel are likely to be hiked anywhere between 50 paise and Re 1 per litre as international crude prices have remained firm over the last fortnight.

Indications are that crude prices, which have already climbed to $31 per barrel, will remain strong on the back of demand for heating in the forthcoming northern winter.

Further, the Organisation of Petroleum Exporting Countries (OPEC) has already indicated that oil supplies are running ahead of demand by a good 1.4 million barrels per day (bpd).

OPEC has threatened to cut production by 900,000 bpd from November 1 and asked non-Opec oil producing nations to "support prices" by cutting their production by 500,000 bpd. Industry sources said oil stocks on the eastern US coast were running low after a recent hurricane disrupted supplies. With winter approaching, the demand for heating fuel will add to the supply-demand mismatch.

While OPEC has a target range of $22-$28 per barrel for its basket of crudes, prices have crossed $ 31.50 per barrel, highest since the Iraq war. After the dismantling of the administered price mechanism, petrol and diesel prices are reviewed every fortnight and adjusted to import parity prices.

The last revision in the prices was on September 1 when public sector oil companies raised petrol prices by up to Rs 2.28 per litre and diesel prices by up to Rs 1.49 per litre.

Senior executives with the oil companies claim that price hike might not be steep compared to last revision in September due to political compulsions. "There will definitely be increase in ex-refinery product prices which might not be reflected at the consumer level." executives said.

In September, the oil companies raised petrol prices with Delhi charging Rs 32.40 for a litre of petrol, in Mumbai Rs 37.42, in Chennai Rs 35.39 and in Kolkata Rs 35.26 per litre. Diesel prices were up at Rs 20.33 a litre in Delhi, Rs 25.75 in Mumbai, Rs 22.67 in Chennai and Rs 22.53 in Kolkata.