Petroleum Minister Ram Naik on Tuesday ruled out any increase in petrol and diesel prices in the run-up to the General Elections saying international crude oil prices have eased.
"I feel there is no case for increasing petrol and diesel prices as international crude prices have come down," Naik told reporters after dedicating to the nation British energy firm Cairn Energy Plc's recent oil find in Barmer, Rajasthan.
Government-owned oil retailing companies had, in December, jacked up petrol and diesel prices by Rs 2 a litre each but restrained from further increasing the prices in January though international crude prices were firm on renewed winter season demand in developed countries.
Stating that petrol and diesel pricing was deregulated in 2002 and oil companies were free to fix the selling price of the two transport fuel in step with the cost of crude, Naik said, "Till elections there will be no hike in prices as crude prices have eased."
He said oil companies are continuing to hold the price of domestic cooking gas and kerosene for about two years now though the cost of raw material (crude oil) has spiralled.
LPG, he said, was being sold at Rs 103 per cylinder loss and kerosene was under priced by about Rs 3 a litre.
"In public interest, the oil companies decided against increasing the prices (of LPG and kerosene). They have deep pockets to absorb such minor losses," he added.