New Delhi: Contrary to speculation, Government today (Oct 15, 2004) decided not to increase petrol and diesel prices despite the sharp surge in crude oil prices, and asked the public sector oil companies to bear the burden for another fortnight.

The Cabinet Committee on Economic Affairs (CCEA) also did not decide on changes in duties on crude oil and petroleum products, without which a hike of Rs 1.88 per litre in petrol and Rs 3.30 per litre in diesel prices may be needed in view of the international oil prices breaching $ 55 a barrel mark.

"The CCEA has decided that for today the prices of all petroleum products will be held at the same level. There will be no increase for this fortnight," Petroleum Minister Mani Shankar Aiyar told reporters after the CCEA meeting.

Public sector oil companies were to meet today to review prices of petrol and diesel, which have remained unchanged since August 1 despite crude prices rising by as much as $ 20 a barrel, leading to a Rs 2300 crore loss in revenue.

The Petroleum Ministry, which was not keen on raising the fuel prices in view of inflation still hovering above 7 per cent, had proposed slashing customs duty on crude, petrol and diesel and cutting excise duty on LPG and Kerosene to offset the hike in crude prices but the CCEA decided against any mid-course correction.

"Duties are normally decided in the Budget for the full financial year. It is not possible during the year to review them. Any change is possible only in emergency," Aiyar said.