Chidambaram said the surge in international oil prices is a matter of grave concern and it was for the Petroleum Ministry to take a call on retail pricing of petroleum products.
NEW DELHI: Finance Minister P Chidambaram on Monday said the surge in international oil prices is a matter of grave concern and it was for the Petroleum Ministry to take a call on retail pricing of petroleum products.
"Yes, rising crude prices is a matter of grave concern... it is entirely for the Ministry of Petroleum to propose that (an increase in domestic fuel prices) and seek a view on this," he said.
Chidambaram was responding to a question if the rise in crude oil prices warranted an increase in petrol and diesel prices. Crude oil prices have touched a record 78 dollars a barrel this month and India imports more than 70 per cent its crude oil requirement.
He said the current inflation rate -- which stood at 4.3 per cent as per latest government data -- was driven by primary commodity prices, mainly fuel and food items.
Asked about the ongoing debate on pricing of natural gas, the Finance Minister said, "I have no views on that".
The report of the Committee of Secretaries that went into the issue of market determined versus regulated prices for natural gas would be considered by the Cabinet, he added.
The rise in prices of international crude oil had a direct bearing on inflation and basic commodity rates.
The Indian basket of crude oil has risen over 30 per cent since February when petrol and diesel prices were cut by Rs 2 and Re one per litre respectively.
The Indian basket of crude oil averaged 72.76 dollars a barrel in August as against 54-55 dollars per barrel in February.
Public sector oil firms are currently losing about Rs 180 crore per day on sale of petrol, diesel, domestic LPG and kerosene as the government has not allowed them to adjust their prices in line with the rise in cost of raw material (crude oil).
Indian Oil Corp (IOC) chairman Sarthak Behuria on July 30 had said the company was losing Rs 5.88 per litre on petrol, Rs 4.80 a litre on diesel, Rs 189.14 per LPG cylinder and Rs 14.63 on sale of every litre of kerosene.
Finance Ministry has indicated it will continue to issue oil bonds this year too to compensate for one-third of the projected Rs 52,162 crore under-realisation on sale of the four fuels.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}