The government on Wednesday put off a proposal to hike natural gas prices by Rs 350 per thousand cubic meters until the second half of 2004.

"The group of ministers' recommendation to raise natural gas prices from Rs 2,850 to Rs 3,200 per thousand cubic meters came up for discussion at the Cabinet meeting on Wednesday. But with the general elections round the corner, no decision was taken," sources in the government said in New Delhi.

If the Cabinet were to go by the GoM recommendation, CNG prices in Delhi would have gone up by close to Rs 2 per kg; besides requiring a revision in domestic cooking gas, power and fertilizer prices.

The government had in September 2003 decided to freeze LPG and kerosene prices for a year (beyond the next general election) despite rising costs of crude oil (raw material).

The GoM had also suggested increasing HBJ gas pipeline, which transports gas from western offshore to consumption centres in the north, transportation charges to Rs 1,160 per thousand cubic meters per day from Rs 1,150 per thousand cubic meters per day.