Even as Petroleum Minister Mani Shankar Aiyar Friday said fuel prices were bound to go up soon, the Communist Party of India-Marxist (CPM) has again expressed reservations and instead sought a cut in levies.

While expressing concern at the recent trend of cash losses by the state-owned oil marketing companies, CPM in a statement Friday said: "Apart from the abnormal rise in global crude prices, the proportionate increase in tax duties levied by the government is proving to be a double burden on consumers as well as the public sector oil companies."

Addressing a public function in Bathinda, Punjab, Aiyar earlier stated that a price hike was imminent due to the spiralling prices of crude internationally.

"The proposal for further hike has been forwarded to the union cabinet for approval."

Without specifying the likely hike, the minister said: "If approved, fuel prices are likely to go up with consumers bearing a part of the burden."

In the April-June quarter this year, all public sector oil companies reported cash losses.

"Unless the central government decides to give some exemption on customs and excise duties, it would be difficult to fill the gap of rising deficit of oil marketing companies that had reached Rs.400 billion," Aiyar said.

Echoing the sentiments expressed earlier this week in parliament by Aiyar, the CPM has stated: "The global price hike impact has to be shared equitably by the government, the oil companies as well as the consumers."

Instead, the Left allies of the government has alleged that while the recent price hike has entailed sacrifice from the consumers and state-owned oil companies, "the private oil companies are making higher profits and the finance ministry earns higher revenue".

Apart from the subsidy burden being borne by the oil marketing companies on kerosene and cooking gas cylinders, the Left party pointed out that the tax component in the capital for petrol is about 57 percent while for diesel it is 35 percent.

Seeking a rollback of levies and an additional road cess imposed in the budget for 2005-06 fiscal, the CPM has urged the government to accept the recommendations of the standing committee of petroleum and natural gas in parliament Aug 4 to form a price stabilisation fund from the cess collected and "to withdraw the duty drawback incentive extended to private standalone refineries".