No oil price hike for now

The retail prices of petrol and diesel may not be revised till June 15. Petroleum Minister Mani Shankar Aiyar hinted that the government wants to continue with the practice of revising petrol and diesel prices on the first and fifteenth of every month.

Welcoming today's decision by the Organisation of Petroleum Exporting Countries (Opec) to increase crude output by 2 million barrels a day, Aiyar said this had given the government "breathing time" till June 15 to see its impact on international crude oil prices and their effect on the Indian economy.

"Between June 3 and the scheduled date of fortnightly revision on June 15, we have enough time to evaluate how international markets will react," Aiyar told the media.

The minister said in the light of the Opec decision, the petroleum ministry would work out a package of proposals regarding domestic prices of petroleum products. He will discuss the package with Finance Minister P Chidambaram before putting it up to Prime Minister Manmohan Singh, who may consult coalition partners on it.

"In 2-3 days time, we will be able to arrive at the short to medium term impact of the Opec decision on oil prices. Once possibilities of the near future are known, we will be able to firm up a package that will be discussed with the finance minister. Together we will meet the Prime Minister and at that point decide what proposal can be taken to the Cabinet," he said.

Hinting that the price hike, if at all, will be minimal, Aiyar said his government was committed to economic reforms with a human face.

"The challenge before us is to establish before the country that we want to pursue economic reform with a human face."

He also indicated that everyone, including oil companies and the finance ministry, will have to share the burden of the spurt in international prices of oil.

He said what was encouraging was that Opec seemed to be working on moderation and stabilisation in international oil prices.

"As far as our domestic economy is concerned, these two words are music to our ears," he added.

The minister said a considered decision will be taken on the pricing of petrol, diesel, kerosene and liquid petroleum gas.