India's import dependence to touch 90 pc: Deora

New Delhi, Nov 24: Petroleum Minister Murli Deora today said the country's import dependence is on the rise to touch 90 per cent from the current 75 per cent and cautioned that the government insulating the consumers from the impact of high prices is not sustainable for a longer period of time.

''The continuance of such a measure for a longer period is not sustainable as it places an enormous burden on the government finances and severely limits its capacity to allocate adequate funds for social welfare projects,'' the Minister said while inaugurating the 5th Petro inia 2006 here.

He said the government has sought to insulate the consumers forming the impact of high prices through an equitable burden sharing among oil companies, government and the consumers.

The Minister said although the government is trying to speed up its alternative fuel production programmes, commercialisation of bio-fuels, hydrogen fuel cells and gas hydrates appear far off unless quick technologies breakthroughs are achieved.

He said oil is a 'swing' fuel and OPEC is agroup of 'swing' producers who can adjust oil prices through production changes to stay competeitive.

Member (energy) Planning Commssion, Kirit Parekh said India would have to sriously address fuel efficiency issues by focussing on public transport, diesel-based rail transport, inter-city freight transport by rail and higher fuel efficient automobiles.

Meanwhile the Minister had said the government will consider cutting petrol and diesel prices when there is a "sustained drop" in international crude oil prices.

He said international oil prices continue to fluctuate and the government is keeping a close watch on the volatile prices.

Mr Deora said the prices of petroleum products were raised on several occasions when crude prices in international markets increased.

During 2006, retail prices of petrol and diesel had been increased only once. "Retail prices of petrol and diesel were increased only partially and not in line with the then prevailing international oil prices. No increase has been made in retail prices of PDS kerosene and domestic LPG." The Minister said the Indian basket of crude oil was at about 67 dollars a barrel when petrol and diesel prices were last raised in June 2006. It came down to 57.26 dollars a barrel in October.

International crude oil prices went up to 75 dollars a barrel in August but domestic retail prices were not raised.

He said that in the first half of 2006-07, the under-realisation of sale of petrol, diesel, LPG and kerosene was Rs. 33,200 crore which had been partially met through burden sharing of Rs 12,000 crore by upstream oil companies and assurance of issue of bonds of Rs 14,150 crore.

UNI