BAGHDAD (CNN) - Keeping a promise he made two weeks ago, Iraqi Oil Minister Ibrahim Bahr Al-Ulum announced Monday that he had resigned his post in a protest over higher gas prices.

"I kept my promise by giving my resignation and giving it to the office of the leader of the ministry in the afternoon of 28th of the last month," he said at a Baghdad news conference.

On Dec. 19, Al-Ulum threatened to resign his post because of a hike in gas prices -- a reason he repeated Monday as he announced he had stepped down from the post.

Higher prices are "not suitable to the economic situation of the people which has a negative affect on their living conditions," he said Monday.

Iraq's Deputy Prime Minister Ahmad Chalabi has assumed direct control of the powerful oil ministry, Reuters reported Friday.

Chalabi, an early proponent of forceably removing Saddam Hussein from power, has been improving relations with Washington after previously falling out with the U.S. administration.

In December, Iraq's Council of Ministers issued a statement announcing a decision to begin enforcement of price increases for oil derivatives.

"I did initially agree to increasing the price of gasoline, but I had a different opinion about the method of executing this order," Al-Ulum told reporters at the time.

"We had agreed to donate money to 2 million Iraqi families in need. This money was meant to be distributed before the price raise."

He also said that officials had planned to gradually increase the price, not have it jump up all at once.

Al-Ulum said that he asked the government to reassess the execution of this decision, adding that Prime Minister Ibrahim Al Jafaari agreed to look into the situation. He said that if the decision was not amended he would resign.

-- Reuters contributed to this report.

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