Spurt in crude oil rates prompted hike: Minister

Chennai, June 10 (UNI) Union Petroleum Minister Murli Deora today ruled out even a partial rollback of the increase in the prices of petrol and diesel, despite a plea by the Congress and suggestions by the Left parties.

Addressing a press conference here to explain the rationale behind the fuel price hike, he said though there was an unprecedented hike in the international crude oil prices, the Centre had effected only a ''marginal increase''.

With the burden of oil companies still staggering at Rs 73,500 crores, the Centre should have increased the petrol price by Rs 10.50 and diesel by Rs 9.38 a litre, but had increased only by Rs four in respect of petrol and Rs two for diesel, he noted.

Mr Deora said the Indian basket of crude oil recorded a new high of 71.13 US dollars a barrel, but the Centre had passed on only 16 per cent of the additional burden on the consumers.

Keeping the interest of the middle and poor class people, the prices of LPG, which should have been hiked by Rs 150 and Kerosene by Rs seven are left untouched, he said.

Stating that it was not possible to withdraw the price hike, even marginally, he said the combined net worth of the oil companies stood at Rs 41,500 crore now and if the present hike was not effected, the networth would be wiped out in a year.

The burden of the oil companies was to the tune of Rs 73,500 crore and the oil companies and the Centre have agreed to equitably share the additional burden.

He said the Congress leaders, including party President Sonia Gandhi have been explained about the necessity for increasing the prices and how it would not be possible even to partially roll back the price hike.

Mr Deora, however, said that the government would consider the suggestions proposed by the left parties to reduce the burden when the crude oil prices were increased.

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