"Price hike is not the only solution. Others like excise duty cut on auto fuel, as suggested by Left, are also being considered... My endeavour will be to get a decision this month," Petroleum Minister Murli Deora told reporters here.

A Group of Ministers headed by Pranab Mukherjee will meet, possibly next week, to look at alternatives and make a recommendation to the Cabinet. "The Cabinet will take the final call," he said.

While Deora refused to categorically state if the government would not raise petrol and diesel prices as an answer to the Rs 340 crore per day loss oil PSUs suffered on fuel sales, senior functionaries said a hike of Rs 4 a litre in petrol and Rs 2 per litre in diesel would be suggested to the GoM.

Indian Oil Corporation chairman Sarthak Behuria said, "We need a lasting solution, not ad-hoc responses. The government should free pricing of petrol and diesel from its control and subsidise domestic LPG and kerosene from the Budget."

Currently, the under-recoveries on petrol, diesel, LPG and kerosene -- estimated to cross Rs 70,000 crore this fiscal -- are shared between the government (which issues oil bonds), upstream oil producers like ONGC, and fuel retailers.

Deora said he had talks with Left leaders including Sitaram Yechury of CPI-M late last week. "The Left (parties) are very cooperative. They have said they will assist in finding a solution for the present crisis."

Crude oil prices touched an all-time high of USD 100 dollars a barrel on Wednesday in New York Mercantile Exchange, triggering fears of more under-recoveries by oil PSUs.

The Indian basket of crude was at record high of 92.29 dollars per barrel on Wednesday.

"We are very much concerned at crude oil crossing 100 dollars. This will trigger search for alternatives and we will also press for energy conservation to cut our reliance on imported oil," Deora said.

On Wednesday, Petroleum Secretary M S Srinivasan had stated that the GoM was likely to meet soon after a panel of ministers meets on January 8 to review food prices situation.

The current price of Indian basket of crude oil is higher by around 22-23 dollars a barrel over the international price prevailing at the time of last increase in petrol and diesel prices on June 6, 2006.

"Price hike is not the only solution. There are other options like excise duty cut that have been suggested by the Left. We've got to find the best solution," Deora said.

Indian Oil, Bharat Petroleum and Hindustan Petroleum are projected to lose Rs 69,753 crore on sale of petrol, diesel, domestic LPG and PDS kerosene, as the government has not allowed them to raise prices in line with the price of imported crude.

Petrol is being sold at a loss of Rs 8.74 a litre, diesel at Rs 9.92 per litre, kerosene Rs 20.53 a litre and LPG at a loss of Rs 256.35 per cylinder.