The Hindu Business Line : International oil price situation `worrisome', says Aiyar <br>`But India has enough supplies to manage demand'

THE Petroleum Minister, Mr Mani Shankar Aiyar, said on Tuesday that though crude prices touching $64 a barrel was a worrisome situation, India had enough resources to manage its requirements.

"I am worried, but not too worried," Mr Aiyar said, adding "the Government still has resources to manage the requirements." When asked about the measures being taken by his Ministry and whether there were any indications of possible price increase in the domestic market in the case of petroleum products, he said, "All information in this regard has been shared with the Cabinet and it is for them to decide."

The Petroleum Ministry has already sent its views on the situation to the Cabinet. Stating that he saw no immediate provocation for the upward price movement in the international market, Mr Aiyar said that the spurt in international prices was based on apprehensions of disruption in supplies even though there has been no interruption.

"There is nothing in global economy to warrant such a rise. Not one drop of oil has been lost. It has become a fashion statement rather than any kind of reflection on global realities," he said.

On the mechanism being worked out, the Minister remained non-committal.

He, however, said that the Government would have to keep the fiscal deficit in check as well as keep the oil companies alive.

The Government would try to do a balancing act between the interests of consumers and the oil firms, which have lost more than Rs 9,700 crore in revenues this fiscal due to the price freeze.

The Petroleum Ministry has been keeping the Finance Ministry and the Cabinet Secretariat informed about the developments, he said.

Earlier, the Minister and his officers met the US India Business Council members. Speaking after the meeting with the Petroleum Minister, Mr Ron Somers, President, US-India Business Council, said that the US would like to join hands with the Indian private sector in the energy field.

The meeting was to discuss energy security and how the two countries could find ways to meet it. "We are looking at ways to leverage on India's NELP V success," he said.

The two countries would be looking at institutional linkages also, Mr Somers added.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page