New Delhi: Government will have to consider cut in excise duties to check hike in prices of petro products like petrol and diesel in case of firming up of international crude prices, Petroleum Minister Ram Naik said.

"In extreme volatilities (surge in prices) of global crude prices, change in excise duty is one instrument available. Naturally as a sector watchdog, I would be moving the Finance Minister as an when the situation demands," Naik said at the news conference called to announce modalities for free petroleum market in the country from April 1, 2002.

While stating that he would not give directions to oil public sector undertakings (PSUs) on the price front, Naik said that, "I feel there should be stability in prices in the interest of consumers. Price changes should not be frequent... changes can be effected every month or every three month."

"Since presently only PSUs are marketing petro products, I desire that the changeover to deregulated market should be smooth," he said while indicating that prices may not undergo changes in the first three months of dismantling of the Administered Pricing Mechanism (APM).

He, however, admitted that surge in international prices after presentation of the Budget where subsidy calculations were made on the basis of global crude price band of $ 20-22 a barrel, had increased the pressure on oil companies which had to take into account both consumer and commercial interest.

From April 1, consumer prices of petrol and diesel would be market determined, while private companies would be allowed to market transport fuels, he added.

PTI