Patna: Petroleum and Natural Gas Minister Ram Naik on September 29 said there was a possibility of a further increase in prices of petroleum products barring kerosene and LPG cylinders from next month.

The petrol companies would be "forced" to hike the prices of petrol and diesel as the prices of these two products have increased in the international market by 5 per cent in six months, from 20 a barrel in March to 30 a barrel this month, he told reporters.

He, however, assured that the prices of kerosene and LPG cylinders would not be affected and the government would continue its subsidy. The Petroleum Ministry would continue to give excise duty concession to consumers to keep the prices of petrol and diesel under control.

The ministry had given two per cent excise duty relaxation to consumers in June so as to keep the prices of these two petroleum products under check, he said.

Naik said the prices of petroleum products were being hiked by speculators, who have a field day whenever there is a war-like situation between the US and Iraq.

The Union minister, who was in Patna in connection with Bharatiya Janata Party (BJP)'s "gaon ki aur chalo" (march to the villages), elaborated the steps initiated by the Petroleum Ministry to boost the swadeshi production of crude oil and gas. The country imports about 70 per cent of its crude oil requirement of 105 million tonnes annually at a cost of about Rs 80,000 crore.

PTI