Petrol and diesel prices will not be hiked immediately as the Cabinet on Friday did not discuss the issue, Defence Minister Pranab Mukherjee said.
Mukherjee said 'No' when asked by reporters if the Cabinet had discussed increasing auto fuel prices.
Public sector oil firms had sought a Rs 4.69 per litre hike in petrol and Rs 5.18 a litre increase in diesel prices due to hardening of crude oil prices, increase in excise duty, levy of additional road cess and extra cost incurred in supplying ultra-low sulphur fuel from April 1.
"The petroleum ministry had proposed that 60 per cent of the hike sought by state-run companies be allowed now and the remaining be spread over a period. But the issue did not come up for discussion today," a senior official said.
The ministry had circulated a Cabinet note pointing that public sector firms were losing Rs 1,250 crore (Rs 12.50 billion) a month in revenues due to the freeze in petrol and diesel prices since November 2004.
The oil ministry did not do much after circulation of the note 'to get it listed for discussion at the Cabinet meeting,'
according to a source.
"The Cabinet considers issues on the merit and urgency of the subject. The Petroleum Ministry did not show any great hurry in getting the Cabinet decision," he said.
The issue may come up at the Cabinet meeting next week if Petroleum Minister Mani Shankar Aiyar 'pushes' it, the source said.
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