New Delhi, April 8: The government seems to be buying time on the controversial issue of raising petrol and diesel prices in the wake of skyrocketing international crude rates.

The government is clearly worried over the adverse political fallout of such a move, which, in recent months, has pushed its economic imperatives to the backburner.

Left leaders met Prime Minister Manmohan Singh today but skirted around the prickly economic issues. The CPM later ratcheted up pressure on the government by demanding the withdrawal of the excise duty hike on petrol and diesel in the recent budget. This, they argued, will obviate the need to raise pump prices.

Defence minister Pranab Mukherjee said the issue of increasing the prices of the two auto fuels was not discussed at the cabinet meeting today.

Public sector oil companies have been seeking a Rs 4.50-per-litre hike in petrol and Rs 5 per litre increase in diesel rates due to hardening of crude prices, increase in excise duty, levy of additional road cess and extra cost incurred in supplying ultra-low sulphur fuel from April 1.

?The petroleum ministry had proposed that 60 per cent of the hike sought by state-run companies be allowed now and the remaining be spread over a period. But the issue did not come up for discussion today,? a senior official said.

The ministry is reported to have circulated a cabinet note, pointing out that public sector firms were losing Rs 1,250 crore a month in revenues due to the freeze in petrol and diesel prices since November 2004.

Meanwhile, the government has allowed Indian Oil to directly charter ships for crude imports instead of going through Transchart, the chartering wing of the shipping ministry. The shipping ministry had been opposed to the move on the ground that it would hit Indian shipping firms, including SCI, which is given preference under Transchart.

Information and broadcasting minister Jaipal Reddy said ?the cabinet gave its approval for allowing IOC to charter ships for oil imports directly.?

According to the shipping policy, import of government-owned cargoes should be done only on free-on-board basis through Transchart.