New Delhi, June 15 (IANS): The government is "seriously concerned"    about the rise of crude oil prices in the global market and is looking at various options, including raising fuel prices, to tackle the situation, Petroleum Minister Murli Deora said here Monday.

"We are seriously concerned about the rise in crude oil prices,” he told reporters after meeting Finance Minister Pranab Mukherjee to discuss his budget wishlist.   

“We have to seriously look at solutions... the alternatives before us are raising petrol and diesel prices, asking the government to make up for revenue loss through issuing oil bonds and upstream firms chipping in,” Deora said.   

The minister, however, refused to confirm whether a fuel price hike was imminent. "I cannot say anything on that," he said.    

In his meeting with the finance minister, Deora asked for restoration of the tax breaks on natural gas production as are given for crude oil.     

This has been a contentious one between the two ministries since last year, when the finance ministry withdrew the tax holiday for gas production.   

"We appealed to him that the seven-year tax holiday from payment of income tax should also apply to natural gas as is available on crude oil production," Deora said.   

He also pressed for giving declared goods status for natural gas to end the differential sales tax in states.