Govt concerned over surging crude price: FM

Finance Minister P Chidambaram said the government was concerned over surging global crude oil prices, now hovering around $75 per barrel, and would address the issue at an appropriate time.

"True. We have no control over crude oil prices. It's always a cause for worry. I am sure the government will address it at an appropriate time," Chidambaram said.

The government has been delaying a hike in domestic petroleum prices in order to check prices of essential items, but it has been impacting oil firms that have been absorbing the increase to a large extent.

The Prime Minister-appointed C Rangarajan Committee on fuel prices had recently suggested a steep hike of Rs 75 per cylinder of LPG, and a moderate Rs 1.21 per litre hike in petrol and Rs 1.96 per litre in diesel prices. It had also suggested restricting sale of subsidised kerosene to only below poverty line families.

Responding to the comittee's recomendations, Petroleum Minister Murli Deora had indicated that LPG consumers would be spared from any hike, saying "all political parties, including the ruling Congress and its allies, were against any hike in prices."