"An appropriate decision on fuel price will be taken at an appropriate time," Deora said at the Economic Editors' Conference in New Delhi.
"...Price hike at this time is not needed," he said when asked to comment on the possibility of raising prices of petroleum products in view of the spiralling prices of crude oil in the international market.
Deora, however, expressed concern about under-recoveries of state-run oil companies on account of increasing global crude prices which are close to $100 per barrel.
Deora said to insulate the economy against volatility in global oil prices, "we are consulting colleagues in other ministries, including Finance Ministry, for an early workable solution to the problem".
The minister also said rupee appreciation has partly neutralised the impact of rising prices in the global market. The Indian currency has risen more than 12 per cent against the US dollar in 2007, making imports cheaper.
Under-recoveries of state-run oil companies are likely to be around Rs 68,648 crore (Rs 686.48 billion) in the current fiscal. Deora said it has been decided to issue oil bonds up to Rs 23,457 crore (Rs 234.57 billion) to compensate oil companies on selling fuel below cost.
Upstream oil companies such as ONGC and GAIL would have to absorb one-third of the under-recoveries.