The Hindu : National : Steps to check inflation to continue

Online edition of India's National Newspaper
Tuesday, Sep 14, 2004

National

National

Steps to check inflation to continue

By Our Special Correspondent

NEW DELHI, SEPT. 13. The prices of petrol and diesel are not likely to be raised at the next fortnightly review meeting of oil companies on September 15, in view of the rate of inflation having crossed the eight per cent mark. Indicating this here today, the Petroleum Minister, Mani Shankar Aiyar, said the fuel prices had remained frozen for the past few weeks and steps would continue to be taken to control inflation.

At a press conference, he noted that international crude oil prices had softened from the peak levels in mid-August but were still higher than on July 31 last when fuel prices were raised. At that time, the public sector oil companies had raised petrol and diesel prices by Rs 1.10 and Rs 1.42 a litre. Subsequently, the Government reduced customs and excise duties on petroleum products.

Satisfactory move

He expressed satisfaction with steps taken by the Organisation of Petroleum Exporting Countries (OPEC) to check the rise in international crude oil prices. He said that OPEC had made considerable efforts to match the single largest increase in demand with an increase in supply. As for the future, he felt crude oil prices may stabilise but would continue to rule at higher levels than 2003.

Mr. Aiyar, who leaves tonight for the OPEC ministerial meeting in Vienna, said he planned to take up the issue of the OPEC countries charging a premium on the crude sold to developing countries. In an address on "Petroleum and Sustainable Development" on September 17, he will argue why the Asian premium is not justified for goals of sustainable development. The so-called Asian premium is an additional levy of $0.6 to $1.2 a barrel on supplies to India over the price at which crude is sold to the United States and Europe.

Meet of importers

He said he plans to hold a conference of the four big importers — China, India, Japan and South Korea — with six of the leading West Asian supplier countries in New Delhi in December or January. He did not, however, expect any decision on the issue at Vienna as OPEC has already stated that importers will have to hold bilateral negotiations on price. The six major oil producers include Saudi Arabia, United Arab Emirates, Kuwait, Iran and Qatar.

On the Indian Oil Corporation making a strategic investment in Haldia Petrochemicals Limited, he said IOC would conduct fresh due diligence of the firm within 10 days. At a meeting today, the West Bengal Government, a promoter of HPL, indicated its preference for the IOC.

Printer friendly page
Send this article to Friends by E-Mail

National