It has been made clear by a top oil ministry official that at a meeting to be held later on Thursday, cabinet would not be reviewing petrol and diesel prices.

It was earlier specified by local media that cabinet would be considering the issue.

A full deregulation of petrol and diesel prices was advised by the Kirit Parikh panel report. If it is done, this will lead to an increase by Rs 4.72, Rs 2.33, Rs 6 and Rs 100 in the prices of petrol, diesel, kerosene and liquefied petroleum gas (LPG) respectively.

The ruling Congress party was supposed to meet later on Wednesday to talk about freer fuel pricing regime, which might give way to an instant hike in prices of gasoline and diesel along with scraping fiscal costs for the government.

But, the move, which could give rise in food prices, was opposed by masses, who protested near parliament and in some towns of Orissa on Wednesday, creating a political challenge to the government's plans to liberalize fuel prices.