M A I N   N E W S

No rollback in prices: Naik

MUMBAI, March 24 (PTI) — Union Minister for Petroleum and Natural Gas Ram Naik today ruled out a rollback in prices of liquefied petroleum gas (LPG) and kerosene, hiked by the government two days back.

“There is no question of a rollback in the prices”, he told reporters here.

Mr Naik warned that the oil pool account deficit would burgeon to a whopping Rs 19,000 crore by the year-end against the current Rs 6,000 crore, if LPG and kerosene prices were not hiked.

“The country will not be able to sustain this”, he added.

Reacting to the NDA coalition partner, the Telegu Desam Party’s criticism of the price hike, Mr Naik said it was NDA’s unanimous decision, and “TDP chief Chandrababu Naidu was briefed on the same by the Prime Minister himself”.

Justifying the hike, he said he had resorted to it as crude oil prices in the international market had gone up by 167 per cent from Rs 3,010 per ton in February, 1999, to Rs 8,050 per ton till date.

Mr Naik pointed out that kerosene price was stagnant since 1985 and in order to reduce the price differential between petrol, diesel and kerosene, the government had to resort to the price hike.

He explained the hike was in line with opening up of the economy and in accordance with the recommendations of an experts group, which suggested that the government do away with subsidies in the oil sector by 2002.

The minister ruled out increase in the prices of diesel and petrol stating that “it will not be favourable for the farmers and transporters as the prices were hiked only last October”.

Blaming Deve Gowda and I.K.Gujral governments of inaction, Mr Naik said if they had revised kerosene price regularly in line with the international trends, it would not have been necessary for him to resort to such a harsh decision.

Comparing existing petroleum products prices in India, Pakistan, Bangladesh and Sri Lanka, he said India had the lowest prices and highest subsidies among them.

Attributing the price hike to adulteration of diesel and petrol with kerosene, he said he wanted to bring the prices of petroleum products on a par to avoid misuse.

NEW DELHI: The National Conference (NC) today joined the Trinamool Congress and Telegu Desam Party (TDP) in criticising the “steep hike” in LPG and kerosene prices, saying that it would have an adverse impact on middle class and poorer sections of society.

“The steep hike in the LPG price will affect the middle class adversely, while the hike in kerosene price will overburden the lower classes which use it as fuel,” NC’s Lok Sabha member Ali Mohammad Naik said here.

CHENNAI: The BJP on Friday asked political parties opposing the steep hike in prices of LPG and kerosene not to view it from the “narrow confines” of their party but from the “perspective of national interests”.

BJP General Secretary M. Venkaiah Naidu told reporters here that the massive external and internal debts of Rs 8.6 lakh crore, coupled with a huge fiscal deficit, had forced the government to take some hard decisions to put the economy back on rails.

Stating that the present economic situation was inherited by the Vajpayee ministry due to the policies of previous governments, he said populist measures would not lead the country anywhere.