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Govt rules out cut in petro prices
India on Wednesday welcomed the slide in international crude oil prices which fell below US $ 27 a barrel, but ruled out passing the benefit to consumers now, saying it could be considered only after the deficit in oil pool account was wiped out.
India on Wednesday welcomed the slide in international crude oil prices which fell below US $ 27 a barrel, but ruled out passing the benefit to consumers now, saying it could be considered only after the deficit in oil pool account was wiped out.
The fall in international crude oil prices is a big relief. However, passing it to the consumers would only be possible when the prices come to US $ 22 per barrel level and the oil pool deficit is entirely cleared, Petroleum Minister Ram Naik told reporters in New Delhi.
Stating that India had suffered badly due to the high volatility of oil prices, he said, “We continue to have an oil pool deficit of around Rs 13,000 crore in spite of price hike in September. “Once the oil pool deficit was wiped out, consumers can be thought of giving some relief,” he said.
Earlier, speaking at a seminar on petroleum prices and its impact organised by ASSOCHAM, Naik said that the administered prices for petrol, diesel, kerosene, cooking gas (LPG) and Aviation Turbine Fuel (ATF) would be phased out by April 2002. “The Administered Price Mechanism (APM) would be phased out by gradually doing away with subsidies in the consumer prices of petroleum products and rationalising customs and excise duty structures by 2002,” he said, adding that from April 2002, a subsidy at the rate of 33.3 per cent of price of PDS kerosene and 15 per cent of LPG for domestic use would remain to be provided through the central budget. Bureau Report
Stating that India had suffered badly due to the high volatility of oil prices, he said, “We continue to have an oil pool deficit of around Rs 13,000 crore in spite of price hike in September. “Once the oil pool deficit was wiped out, consumers can be thought of giving some relief,” he said.
Earlier, speaking at a seminar on petroleum prices and its impact organised by ASSOCHAM, Naik said that the administered prices for petrol, diesel, kerosene, cooking gas (LPG) and Aviation Turbine Fuel (ATF) would be phased out by April 2002. “The Administered Price Mechanism (APM) would be phased out by gradually doing away with subsidies in the consumer prices of petroleum products and rationalising customs and excise duty structures by 2002,” he said, adding that from April 2002, a subsidy at the rate of 33.3 per cent of price of PDS kerosene and 15 per cent of LPG for domestic use would remain to be provided through the central budget. Bureau Report