The government is "seriously concerned" about the rise of crudeoil prices in the global market and is looking at various options, includingraising fuel prices, to tackle the situation, Petroleum Minister Murli Deorasaid here Monday.

"We are seriously concerned about the rise in crude oil prices," hetold reporters after meeting Finance Minister Pranab Mukherjee to discuss hisbudget wishlist.

"We have to seriously look at solutions... the alternatives before us areraising petrol and diesel prices, asking the government to make up for revenueloss through issuing oil bonds and upstream firms chipping in," Deorasaid.

The minister, however, refused to confirm whether a fuel price hike wasimminent. "I cannot say anything on that," he said. In his meetingwith the finance minister, Deora asked for restoration of the tax breaks onnatural gas production as are given for crude oil.

This has been a contentious one between the two ministries since last year,when the finance ministry withdrew the tax holiday for gas production. "Weappealed to him that the seven-year tax holiday from payment of income taxshould also apply to natural gas as is available on crude oil production,"Deora said.

He also pressed for giving declared goods status for natural gas to end thedifferential sales tax in states.