New Delhi: The CPM (Communist Party Marxist) today (Oct 29, 2004) said it was not averse to Rs 1.22 per litre hike in petrol and a moderate increase in diesel prices, but asked Government to defer raising the rates till the US Presidential elections.

"We believe the prices will fall after the US Presidential elections. Therefore, we want the Government to hold the price line till elections (due on November 4)," CPM leader Sitaram Yechury told reporters after a meeting with Petroleum Minister Mani Shankar Aiyar.

"But if that is not possible, considering the enormous burden unchanged prices are putting on public sector oil companies, we want the common man to be spared by not hiking kerosene and LPG prices and increasing diesel prices only marginally," he said.

As per the mechanism of fixing prices within a narrow price band, petrol prices will have to be increased by Rs 1.22 a litre and diesel by 2.24 per litre to bring domestic prices in line with the international crude oil prices that have touched a record $56 a barrel.

A decision on petrol and diesel prices, which have remained unchanged since August 1 despite a 33 per cent surge in raw material cost, will have to be taken by Sunday (Oct 31, 2004), the next due date for reviewing prices of the two auto fuels.

Aiyar said a decision on prices will have to be taken by the Government by Sunday, possibly at a meeting with the Prime Minister or the Cabinet Committee on Economic Affairs.

Yechury said petrol and ATF prices can be raised even above the price band but diesel price hike has to be moderate.