New Delhi: November 3, 2007 – The Crude oil prices are about to touch the $100 mark, naturally the retail fuel consumers in the country will have to buy fuel at highly subsidized rates. To curb this situation, Petroleum minister Murli Deora, who met UPA chairperson Sonia Gandhi on the issue, and she does not want any price hike.

After meeting with Sonia Gandhi, the Minister ruled out an immediate price hike and said the government would ‘explore every possible option’ to bail out the oil companies.

“Yes, I have met Ms Gandhi to appraise her of the situation,” he told ET. He said the government is concerned about rising crude prices in the international market and its adverse impact on the oil companies. He, however, declined to comment on the probable action.

The government is exploring all options including raising the value of the oil bonds and an excise duty reduction. Some officials are even in favor of marginally raising retail prices of fuel. “However, a final decision would emerge only after consulting both PMO and the finance ministry.

After all, pricing of petroleum products is politically sensitive,” an official said. Political sensitivity is even higher at the moment due to forthcoming assembly elections in Gujarat.

A senior official in the petroleum ministry, however, ruled out a price hike in near future. “There is no formal proposal from the ministry to increase retail prices of petrol and diesel,” he said.