Committee on petroleum criticises price hike

By Our Special Correspondent

NEW DELHI, APRIL 25. The Parliamentary Standing Committee on Petroleum and Chemicals has called for the immediate withdrawal of the hike in prices of kerosene and LPG. Expressing its anguish over the way in which prices were revised recently, it noted that this was done immediately after the recess period of the Budget session had begun.

``The Government also did not consider it necessary to take the Standing Committee on Petroleum and Chemicals into confidence in this matter, particularly when the demands for grants of the Petroleum Ministry were being considered by them,'' it said.

The Committee, which is headed by Mr. Mulayam Singh Yadav, said the matter should have been brought first before Parliament or the Standing Committee whatever the cause of the price revision. It recommended that no decision be taken by the Government on such matters of public importance without getting the views of Parliament or Parliamentary Committees.

In its fourth report, which was tabled in Parliament today, the Committee said the import dependence of crude oil had risen from about 50 per cent in 1992-93 to 60 per cent in the terminal year of the Eighth Plan and might be 70 per cent by the end of the ninth plan.

This import dependence involves a huge amount of foreign exchange and affects the economy directly, it is pointed out. The Committee recommended that the Government should limit imports and raise exports of surplus petroleum products.

It also suggested a change in the oil exploration strategy. The Government should pay special attention to identify more blocks by spreading exploration efforts over all basins, including unexplored or less explored ones having favourable formations. The Committee emphasised the need to concentrate in deep water blocks on priority basis, particularly off-Kutch and off-Krishna Godavari basins in view of greater potential in these areas. For this purpose, it said, seismic surveys with proven technology of all basins should be done expeditiously.

The Committee recommended that the Government take steps to evolve ways and means to raise funds for strategic tankages for crude oil and petroleum products. This suggestion is in the light of the Ninth Plan document which notes the need for such tankages to avoid supply disruption in case of war or natural calamities.

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