M A I N   N E W S

Govt hints at hike in fuel prices
Tribune News Service

New Delhi, August 16
With the average price of Indian crude oil basket crossing $ 60 per barrel, the government today indicated to increase fuel prices soon while adding that all steps would be taken to ensure that the burden on the common man was minimal by considering reduction in duties. “We are going through one of the worst crisis in international oil prices. We have taken a number of measures to greatly restrict the impact of spiraling prices”, Petroleum Minister Mani Shankar Aiyar told the Lok Sabha, intervening in a discussion on rise in prices of essential commodities, including oil. “We believe in equitable burden sharing. A little bit by the consumer, a substantial chunk by the government and the larger share on shoulders of the oil companies,” he said apparently indicating the possibility of a moderate hike in domestic oil prices. Demolishing the Opposition arguments that the Centre had done little to protect the interests of common man, Mr Aiyar presented statistics to buttress his point.

He said oil prices had shot up by $ 18 per barrel in the past 14 months which was equivalent to the increase over eight year period from 1996 to 2004. Yet the UPA government increased petrol prices by mere Rs 7 as against NDA government’s Rs 16, PDS kerosene by only 4 paise vis-a-vis NDA regime’s Rs 6.05, diesel by Rs 6 as against NDA’s Rs 15 and LPG by Rs 53 a cylinder as against Rs 145 a cylinder by the BJP-led coalition. He said the UPA government had resorted to only modest increase and oil companies absorbed a sizeable amount despite a whopping 164 per cent rise in crude oil prices, petrol 177 per cent, diesel 203 per cent, kerosene 218 per cent and LPG 108 per cent in three years.