New Delhi: State-run oil firms today (May 15, 2004) decided to keep prices of petrol and diesel unchanged, even though international crude oil prices are at an all time high.

With the exit of Vajpayee Government, which had barred oil companies from raising fuel prices despite rise in cost, it was speculated that petrol and diesel prices will be hiked by Re one litre each.

"Petrol and diesel prices are not being changed," a spokesperson of Indian Oil Corp, the country's largest oil retailing company, said but did not give any reason.

After deregulation of oil sector, public sector firms were given freedom to fix petrol and diesel prices every fortnight in line with cost of crude oil.

The public sector oil companies are demanding an increase of Rs four per litre and Rs five per litre in price of petrol and diesel respectively as the sharp jump in international crude oil price since last month has eroded the over-recoveries from petrol and diesel to subsidise LPG and kerosene. Petrol and diesel prices were last revised on January 1, 2004 and since than crude oil prices have jumped by over 6 dollars a barrel.