New Delhi: Petrol and diesel prices may go up from Oct 16, 2004 by upto Rs 0.65 and Rs 1.60 per litre respectively even though Petroleum Minister Mani Shankar Aiyar today (Oct 14, 2004) said the Government wound take a final decision tomorrow (Oct 15, 2004).

"We have time till tomorrow," Aiyar told reporters after an hour-long meeting with Prime Minister Manmohan Singh when asked if petrol and diesel prices would go up to offset the spurt in international crude oil prices which reached a historic high of over $ 54 a barrel.

"I have had the opportunity of discussing various dimensions of the issue of petroleum product prices with the Prime Minister. We reviewed the possible options but since a decision is not required to be taken today, we will continue consultations on some of the nuances (of raising prices)," Aiyar said.

Petrol and diesel prices, which have remained unchanged since August 1 despite a 30 per cent jump in raw material prices, are due for review tomorrow as per the mechanism of fixing prices every fortnight.

New prices, if revised, would be effective from midnight of Friday and Saturday.

Aiyar, who refused to say if prices would be increased, added that oil-marketing companies would announce their decision by tomorrow evening.

He had, however, on the previous occasion, on September 30, not waited for oil marketing companies to make the announcement of no change in prices and gone ahead and made a public announcement immediately after meeting Prime Minister.

Industry sources said Aiyar not announcing any decision was indicative of a possible hike in petrol and diesel prices. "The hike was not announced today as it might have led to petrol pumps going dry with dealers hoarding the stocks they have now, so as to sell them at higher rates later."

Sources said IOC, BPCL, HPCL and IBP together lost Rs 2273 crore in first six-and-half months of the current fiscal on selling petrol and diesel below the international price.