Government subsidies on kerosene and cooking gas will be extended after the March 2007 deadline, petroleum minister Murli Deora said in New Delhi today and as such their retail prices are not going to be increased.

He said Congress party president Sonia Gandhi had instructed the government to ensure that the prices of fuels used by the poor should not be increased.

The government had said in 2002 that it would phase out subsidies on LPG and kerosene over three years, which was extended in 2005 to 31 March 2007. Deora is meeting finance minister P Chidambaram next week to discuss subsidies and duty changes for the sector.

Retail petrol and diesel prices were cut marginally in November 2006 by 4.25 per cent and 3 per cent respectively in November.