New Delhi: Petrol and diesel prices are likely to go up by at least Rs two per litre after the Lok Sabha polls, once the current freeze on revising prices in step with the cost of the raw material - crude oil - is lifted.

The public sector oil companies, Indian Oil, Hindustan Petroleum, Bharat Petroleum and IBP, are estimated to have taken a hit of around Rs 3,600 crore during January-March 2004, so as not to hurt Government's 'India Shining' image during polls, industry sources said.

Oil companies have not been allowed to revise petrol and diesel prices even though crude oil prices have risen by close to $ four a barrel since the last revision on January 31, which based the Re one per litre increase in petrol and diesel prices on crude oil at $ 29 a barrel.

After dismantling of the administered pricing mechanism, oil companies were given freedom to revise prices of petrol and diesel every 15 days based on the average of crude oil they bought from the international market during the fortnight.

Sources said the Cabinet had last month during an informal discussion, directed the oil companies to keep all price increase on hold until the elections were over.

Prices were also kept on hold ahead of the November Assembly elections in Madhya Pradesh, Delhi, Rajasthan and Chhattisgarh. After the elections, prices were raised by Rs two per litre in two instalments to compensate the oil firms for their past losses.