Concerned with the volatility in the global crude oil prices, the Petroleum Minister, Mr S Jaipal Reddy, said he will take the issue of fuel retail prices to an Empowered Group of Ministers soon.

Speaking to reporters here, the Minister said, “There is volatility in the market. I want to take the matter to an EGoM after the Budget.” The price at which Indian refiners buy their crude rose sharply on Thursday to $112.57 a barrel. India imports about 80 per cent of its crude oil requirements and the international oil prices necessarily have a bearing on the domestic prices of petrol and other petroleum products.

The volatility in crude oil prices, which has been triggered by political turmoil in Libya, is building pressure on the public sector oil marketing companies (OMCs) to review the retail prices of petrol. In June 2010, the Government had taken a decision to make price of petrol market determined both at refinery gate and at the retail level. As the international oil prices have been rising, the OMCs have been revising the petrol prices accordingly.

However, in order to protect the common man from the impact of rise in international oil prices, the Government continues to modulate prices of diesel, domestic LPG and PDS kerosene. At present, the desired increase in petrol prices is about Rs 2.70 a litre at Delhi.

RIL-BP deal

Asked about the mega deal of Reliance Industries Ltd and British firm, BP, the Minister said, “We seem to have received applications from Reliance for approvals. The matter will be considered on the basis of merit.”

On Cairn-Vedanta deal, the Minister said, “Our idea is to take it to the Cabinet as quickly as possible.” Earlier, Vedanta Group Chairman, Mr Anil Agarwal, met the Petroleum Ministry officials. After the meeting, he said, “We had a very positive talk. We look forward to a positive outcome… The deal must go through.”

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