New Delhi: The government is understood to have directed the national oil companies not to hike prices of petrol and diesel at least for two months, provided global crude oil prices remain below $ 23/24 a barrel.

Oil PSUs have been told to hold back any increase in prices of transportation fuel at least for two to three months after the price decontrol starts from April 1, 2002, highly placed government sources said.

The directive is part of the government-PSU consultation on pricing mechanism in the period in which decontrol would take place, sources said, adding a uniform price line is likely to be maintained by these companies.

"The national oil companies will decide on the prices of petrol and diesel in coordination, like it was being done in case of decontrolled naptha and other industrial petro products," they said.

When contacted, the Petroleum Minister Ram Naik said "Government will direct national oil companies to maintain price stability even after dismantling of the Administered Pricing Mechanism (APM)."

Naik indicated that sudden spurt in crude oil prices would not be passed on to domestic consumers at least in the beginning of a deregulated era.

"For the time being, government will facilitate coordination between national oil companies to maintain price stability," he said.

Naik said crude oil prices have increased by three and a half dollars since the presentation of the Union Budget for 2002-03.

PTI