NEW DELHI: Petroleum Minister Murli Deora is likely to hold talks with Finance Minister P. Chidambaram on oil pricing and subsidy issues next Monday. He hinted that sometimes price hikes became "unavoidable".

Speaking to reporters on the sidelines of a road show organised for coal-bed methane bidding here on Friday, he said the Union budget did not address some oil sector problems. A meeting was being held to resolve these issues.

Mr. Deora, who has been arguing against a hike in oil prices ever since he took charge, said efforts were being made to spare consumers, especially weaker sections. At the same time, he would try to ensure that public sector companies did not continue to lose money on sale of petrol, diesel, LPG and kerosene.

Mr. Deora, however, would not commit himself and say there would be no increase in the prices of LPG and kerosene meant for the public distribution system, while allowing a marginal hike in petrol and diesel prices. This would depend, he said, on the Finance Ministry's response to the proposals for enlarging the subsidies on LPG and kerosene as well as on rationalising duties.

Talks were already under way between the two ministries on the Rangarajan Committee recommendations on oil pricing and taxation. While some proposals should be welcomed, others such as raising the LPG price by Rs. 75 a cylinder would be difficult to implement, Mr. Deora said. He termed "realistic" the three-month schedule fixed by Mr. Chidambaram for a thorough discussion on the committee's recommendations and for working out a package for the oil sector.

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