The Hindu : Front Page : Fuel price will be cut if crude prices drop: Deora

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Fuel price will be cut if crude prices drop: Deora

N. Ravi Kumar

— Photo: R. Ragu

Minister of State (Independent Charge) for Civil Aviation Praful Patel inaugurating IOC’s ATF pipeline from Manali Refinery to the Chennai airport on Saturday. Minister of State for Petroleum & Natural Gas Jitin Prasada (left) and Union Petroleum Minister Murli Deora, are in the picture.

CHENNAI: Petrol and diesel prices will be reduced if international crude prices drop, Union Petroleum and Natural Gas Minister Murli Deora said on Saturday.

He said this in response to a query from reporters at the commissioning of an aviation turbine fuel (ATF) pipeline of Indian Oil Corporation and a sea water desalination plant of Chennai Petroleum Corporation Ltd. (CPCL) here.

Mr. Deora recalled that when the crude prices had come down a few months ago, the government had reduced the prices of automobile fuels.

Earlier, in his presidential address at the function held at CPCL’s refinery at Manali, Mr. Deora said that the increase in fuel prices came in the face of galloping crude oil prices and mounting under-recovery of oil marketing companies (OMCs). “The financial position of OMCs continues to be a matter of concern. To maintain their financial health, the government was left with no other alternative but to increase the prices.”

Noting that the recent times were challenging for the oil industry, he said high global crude oil prices over the last two years had impacted both the national economy and the individual. Under-recovery of OMCs on the sale of petroleum products for 2008-09 was Rs.1,03,292 crore.

Mr. Deora said every effort was being made by the government to insulate the “aam admi” from the volatility of global crude oil prices.

“Accordingly, no increase was effected in the prices of PDS kerosene and domestic LPG.”

The ATF pipeline from the refinery to Chennai airport and the desalination plant were two important steps taken by the CPCL, an IOC group company. The pipeline would reduce traffic congestion, eliminate safety hazards posed by the movement of tankers and, above all, positively impact environment pollution, he said.

The desalination plant would help conserve precious groundwater. Considering that Chennai city faced water crisis periodically due to monsoon failure, water saved by way of the plant and conservation and recycling initiatives of CPCL would “no doubt meet the requirements of Chennai city.”

Union Minister of State for Civil Aviation Praful Patel, who unveiled a plaque to mark the commissioning of the 95-km long ATF pipeline, established at a cost of Rs.50 crore, said it was routed through Sriperumbudur, near which the second airport in Chennai was planned. Rarely did such a thing happen in India – the infrastructure being available before the project.

Deputy Chief Minister M.K.Stalin commissioned the desalination plant by unveiling a plaque. Union Minister of State for Petroleum and Natural Gas Jitin Prasada said with the desalination plant, CPCL would become self sufficient in its water requirements.

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