The Hindu : Front Page : Petrol, diesel prices to remain unchanged

Online edition of India's National Newspaper
Saturday, Oct 16, 2004

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Front Page

Petrol, diesel prices to remain unchanged

By Our Special Correspondent

NEW DELHI, OCT. 15. The Government today decided to maintain the status quo on prices of petrol and diesel, though global crude prices touched a record level of over $54 a barrel. This means that the entire burden of the higher prices will fall on the public sector oil companies, as there has also not been any move to cut import duties on crude.

`Not this fortnight'

The Petroleum Minister, Mani Shanker Aiyar, talking to reporters after a meeting of the Cabinet Committee on Economic Affairs, said prices were not being raised this fortnight, but discussions on the issue would continue. The fortnightly revision of prices was due today and there was widespread speculation of an increase.

Mr. Aiyar, who met the Prime Minister, Manmohan Singh, yesterday and had an hour-long discussion on oil pricing, said some Ministers could not attend today's meeting and would be consulted in the next few days.

These included the Agriculture Minister, Sharad Pawar, and the Railway Minister, Lalu Prasad. Besides, he said, discussions would have to be held with coalition partners and the Left parties before taking any decision. This is a responsible Government, he said.

Referring to the burden on oil companies, he said they had the capacity to bear it for the time being. The next review would be carried out as usual after another fortnight.

Import duties

Mr. Aiyar said the Government had no immediate plans to cut import duties. It would prefer to wait for the report of the Lahiri Committee. It was not desirable to change duties announced in the Budget. Such measures should be carried out only during emergencies.

Besides, the Government was conscious of the responsibility to protect consumers' interests and the burden of the surge in crude prices would be borne by all stakeholders — oil companies, consumers and the Government.

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