No immediate hike in fuel prices: Aiyar

Mani Shankar Aiyar, minister of petroleum and natural gas, today ruled out any immediate increase in fuel prices, but said that he would present options for bridging the vast gap between cost of producing LPG and kerosene and their retail selling price to the energy co-ordination committee (ECC) headed by Prime Minister Manmohan Singh.

"Since I say that oil prices in the international markets have gone up, it does not necessarily mean that prices will have to go up here too," he said.

Aiyar will, on Friday, present various options of bridging the Rs 190 per cylinder deficit in LPG selling price and its cost of production, and ways to narrow the gap between the selling price of kerosene and diesel that has been the main cause of adulteration.

The minister said options before his ministry were either to make no change in petrol, diesel, LPG and kerosene prices despite the rise in cost or remove all controls and let market prices prevail.

"Alternately, there could be a mid-way where prices are raised marginally and control continues. All the options and their impact will be presented to the energy co-ordination committee," he added.