NEW DELHI, June 27: The plans of the United Front Government to raise the price of petrol and petroleum products with immediate effect suffered a setback yesterday as the Congress refused to support the move.

While cautioning Prime Minister Inder Kumar Gujral against any immediate increase in oil price, Congress president Sitaram Kesri said this would adversely affect the common man and his party needed time to study the proposal. Kesri held an hour-long close-door meeting with the Prime Minister on the subject yesterday. He was assisted by party vice-president Jitendra Prasada and former Union Minister Pranab Mukherjee.

Both sides declined to disclose what transpired at the meeting, saying it could affect commercial interests of the country. But it is reliably learnt that the Gujral Government had proposed a 6 to 8 per cent petrol and diesel price hike to complete reforms in the oil sector.

When contacted, Mukherjee confirmed that the Congress had declined to agree to the Government's proposal and had sought time to study the move. During the meeting, Gujral pointed out that last year's hike had failed to wipe out the oil pool deficit.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.