Mumbai: May 17, 2008 - Oil PSUs have also threatened to impose LPG quotas per family and suspend diesel imports to cushion themselves against record high crude oil prices.

State-owned oil companies informed government that they will forced to impose LPG quotas per family and curtail new connections and lower the supplies of diesel, petrol and kerosene, however government is yet to take any decision said leading business daily.

Companies like Indian Oil, Hindustan Petroleum and Bharat Petroleum are running short of cash, since they are selling fuel at huge losses. Fuel prices in India are fixed by government and are reluctant to hike prices in the run-up to next year's general elections. Government is unlikely to allow these companies to go ahead with their plan, adds daily.

Top officials of IOC, HPCL and BPCL ealier met petroleum ministry official to apprise them of the growing losses. Some of the radical suggestions from the oilcos include: No additional LPG connections, quota per family, no imports of diesel and continuance of quota for kerosene, said daily.