New Delhi, June 8 (IANS) A decision on increasing the feul prices in the country was Monday deferred as an Empowered Group of Ministers' (EGoM) meeting, apprehending its possible inflationary impact, said the issue needs more deliberation.

A ministerial panel headed by Union Finance Minister Pranab Mukherjee delved into the issue of the fuel price hike factoring the recommendations of the Kirit Parekh Committee.

The ministeial panel noted that the public exchequer faced a financial burden of Rs.345,000 crore to compensate the losses of various public sector oil companies for selling fuel at subsidized rates between fiscal 2003-04 and 2009-10.

A further meeting will be scheduled shortly and if the Kirit Parekh Committee's recommendations are implemented then, the transport fuel prices in India may rise by up to Rs.3.5 per litre as it permits state-run oil firms to charge market rates for such products.

Union Agricultural Minister Sharad Pawar, Railways Minister Mamata Banejee and Highways Minister Kamal Nath, who are membrs of the EGoM, did not attend the meeting.