The Hindu : National : "No time frame for oil price hike"

Online edition of India's National Newspaper
Saturday, Jun 04, 2005

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National

"No time frame for oil price hike"

Special Correspondent

`It is for the Prime Minister to decide'

NEW DELHI: Petroleum Minister Mani Shankar Aiyar on Friday refused to give any time frame for the proposed hike in oil prices.

It was for Prime Minister Manmohan Singh to decide on the issue, said Mr. Aiyar, who is embarking on a 10-day trip abroad tomorrow.

He told newspersons here that he as well as the Prime Minister had met Left leaders to discuss the issue. Other discussions might be held before taking a decision. "When we reach a decision, we will inform you. There is no suspense and nothing is being done in secrecy."

After two rounds of consultations with the Left parties held by the Prime Minister, it appeared that the stage was set for an increase in the prices of petrol and diesel along with LPG. Kerosene prices are likely to remain untouched.

The Prime Minister is believed to have submitted convincing arguments to the Left leaders on the need for raising the prices, pointing out that the navaratna oil companies might otherwise become unprofitable in the long run.

This would, in turn, affect the country's energy security and dependence on imported oil could place tremendous pressure on the economy, he was said to have argued.

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