The price of petrol is expected to increase despite the Domestic Trade and Consumer Affairs Ministry claiming otherwise last week.

According to a Caltex petrol station operator in Kuala Lumpur, Andrew John Maengkom, Caltex had told its distributors throughout the country to prepare the extra cash to buy the fuel.

"We were told by Caltex that the fuel price hike is likely, probably before or after the announcement of Budget 2003 next week," he said when met recently.

The budget will be presented by Prime Minister Dr Mahathir Mohamad in Parliament on Sept 21.