The government today said it is not in favour of hiking diesel price in the immediate future even as the current retail rate is nearly Rs 12 per litre lower than its actual cost.        

"There is no proposal to increase diesel prices with us at present...," Petroleum Minister S Jaipal Reddy told reporters here on the sidelines of a FICCI conference on fuel retailing.         

"Whatever we do, we will have to bear the under recovery burden. Whatever be the under recoveries (of the oil marketing companies), we are not in favour of raising (diesel) prices," he said when asked about the huge subsidy burden on diesel, kerosene and domestic LPG.         

Public sector oil marketing companies currently lose Rs 11.65 per litre on diesel, Rs 33.93 per litre on kerosene sold through PDS and Rs 468.50 per 14.2-kg domestic cooking gas cylinder.