The Hindu Business Line : Top priority to petrol, diesel price revision

THE newly appointed Government is actively looking at the issue of revision in petrol and diesel prices in the wake of steep increase in international prices, according to the Petroleum Minister, Mr Mani Sankar Aiyer.

Speaking to press persons here on Monday after taking charge of the Ministry, Mr Aiyer said, "This is a very important issue. We have to give it utmost priority and seriously consider all aspects before arriving at a decision."

During the day, Mr Aiyer held meetings with senior Petroleum Ministry officials and, among other issues, discussed the issue of a possible price hike and its timing.

According to Mr Aiyer, who also holds the Panchayati Raj portfolio, the Standing Committee report on rural development will form the basis of empowerment of local bodies and fulfilment of former Prime Minister Mr Rajiv Gandhi's dream of grassroots democracy.

"Grassroots democracy cannot exist without local bodies. My first priority will be to empower Panchayati Raj institutions and provide them independent financial powers so that they can work for betterment and upliftment of the poor," Mr Aiyer said.

"We (the Congress) have said in our manifesto we will emphasise on decentralisation. This will be our first priority," the Minister said

Petrol and diesel prices were last revised on January 1, 2004. The earlier government led by Mr Vajpayee had put in abeyance any raise in petrol and diesel prices in a bid to remain consumer friendly and endear themselves to the voting class. With the elections getting over, the oil marketing companies have applied pressure on the Government to raise product prices.

The public sector oil marketing companies have been losing money in the product distribution business, witnessing a negative margin on sale of products.