Petroleum minister Mani Shankar Aiyar on Wednesday ruled out hiking petrol and diesel prices in step with the firming up of international oil prices and the increase in excise duties.
"No, certainly not," Aiyar said when asked if the government was, in the immediate future, contemplating raising petrol and diesel prices.
While international oil prices have risen sharply to over $54 per barrel, finance minister P Chidambaram had raised the excise duty on petrol and diesel. The oil firms are yet to pass on the increased levies to the consumers.
"We will have to go to the cabinet (for pricing of petrol and diesel). My ministry will finalise its proposal (on price change) for the cabinet on Wednesday after which it will be circulated. The cabinet will consider it thereafter," Aiyar said.
The proposal is expected to come before the cabinet before the end of the month.
The increase in excise duty alone warrants a massive Rs 2.85 per litre increase in petrol price and a Re 1 hike in diesel price. Additionally, the cess for road development has been increased by 50 paise per litre to Rs 2.
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