Jaipal Reddy to evolve consensus on petroleum prices

Sudini Jaipal Reddy, who was today named the country's new oil minister, said he will focus on building a consensus on contentious issues like fuel price increases that have become necessary in view of rising international crude oil prices.

"The task confronting the petroleum ministry and the country are common," Reddy, who was moved from the urban development ministry to the ministry of petroleum and natural gas, told the Press Trust of India.

Rumours were doing the rounds that Reddy's predecessor Murli Deora and his junior Jitin Prasada were moved out of the ministry over last week's increase of Rs2.50 per litre in the price of petrol.

Reddy said he will "study the problem" of high global oil prices and "take decisions in consultations" with the cabinet.

The petroleum ministry is the only one where both the cabinet minister and the minister of state were moved out in what Prime Minister Manmohan Singh called a "minor reshuffle".

The price increase was not received well within the Congress in view of the already spiralling food prices.

"In politics, nothing should come as a surprise," Reddy said, commenting on his unexpected move to the oil ministry.

"This is not a new government. This is a new minister in an old government. When a new minister takes over, the policy does not change," Reddy said. "Whatever decision is taken it will be taken by the cabinet."

With the oil-marketing companies pressing for an increase in prices of diesel and domestic LPG after global oil prices rose to $92 a barrel, he said a balance would have to be struck.

"To some extent all of us have to bear a burden. No government would like to impose these hikes on people.

"If we are going for a hike in diesel [prices], it will have a cascading effect. I appreciate the problem [of the common man] but we will have to strike a balance between appreciation of the problem of the common man and the larger problem that our country faces in respect of rising international oil prices."

Deora, on the other hand, said he was thankful to the prime minister and United Progressive Alliance leader Sonia Gandhi for "giving such an important portfolio of corporate affairs".

He immediately got down to business, getting a briefing from the secretary in his new ministry.