In an interview with the state-run BBC on Tuesday, Benmehidi described the move as “the holy rule of hospitality.”
He made the remarks after opposition forces demanded Algeria to return Gaddafi’s wife and daughter, along with two of his sons Muhammed and Hanibal.
The opposition called the move an “act of aggression against the Libyan people.”
On Monday, Algeria announced that several members of Gaddafi’s family had crossed into its territory at 08:45 local time (0745 GMT).
Meanwhile, clashes between opposition forces and troops loyal to Gaddafi are underway near the fugitive ruler’s hometown of Sirte, which is one of the last areas still under control of loyalists.
Chairman of the Transitional National Council Mustafa Abdel Jalil on Tuesday gave an ultimatum to pro-Gaddafi troops to surrender until Saturday.