The Cabinet Committee on Economic Affairs on Wednesday deferred a decision on the package on pricing and distribution of sensitive petroleum products.

"The CCEA has deferred the decision on a package on pricing and distribution of sensitive petroleum products as the petroleum minister was not present," the finance minister P Chidambaram told reporters after the CCEA meeting.

The Cabinet also deferred a decision on raising petrol and diesel prices which has become necessary due to a surge in the crude oil prices.

Diesel prices were supposed to go up by Rs 1.20 per litre and petrol prices by Rs 0.65 per litre but in the absence of the Petroleum Minister Mani Shankar Aiyar at the meeting, a decision was deferred, a top government official said.

The issue is likely to come up again before October 31, the next date due for revising petrol and diesel prices.

Aiyar, Left to discuss petro price hike

Petroleum minister Mani Shankar Aiyar will meet Left party leaders this week to arrive at a consensus on raising petrol and diesel prices that has been necessiated due to crude oil prices touching a historic high of $ 56 a barrel.

Petrol and diesel prices have not been raised since August 1 despite raw material cost (crude oil) surging by over 33 per cent, resulting in heavy losses to public sector oil firms.

"I have already held discussions with CPI leaders A B Bardhan and A Raja on the issue. I also spoke over phone with CPM leader Sitaram Yechury and asked him if leaders of all Left parties can be brought together to discuss the issue on October 29 or 30," Aiyar said.

The cabinet committee on economic affairs had not taken any decision on the issue pending wider consultations with the UPA allies, particularly the Left though October 15 was the last due date for reviewing petrol and diesel prices.

Petrol and diesel prices are due for a review on October 31. Aiyar said he has informed the prime minister's office about the meetings with key allies for an "appropriate decision for further intra-government consultations."

He did not say if duties on crude and products would be cut to contain the impact of surge in crude oil prices. "I cannot say anything on that. The Ashok Lahiri committee (constituted by the finance ministry) is looking into the duty structure."