Search the Internet          Tips  Sites: Finance, Investment

Petroleum prices to be fixed by companies, not by Govt: Naik

Prices of petrol, diesel and other petroleum products will now be fixed by oil companies as the Administered Price Mechanism has been deregulated from April first this year, Petroleum Minister Ram Naik informed the Lok Sabha on Thursday.

However, the government had asked the oil companies not to pass on for the time being to domestic consumers the recent sudden hike in prices of petroleum products in the international market, he said replying to queries during the Question Hour.

Responding to the government's suggestion, the oil companies have not effected any increase as consequent to the rise of prices in the global market, Naik said.

He, however, said the government has decided to constitute a Petroleum Regulatory Board to check ''profiteering and exploitation'' of the domestic consumers by the oil companies.

A Petroleum Regulatory Board Bill, 2002 will be introduced in the current session of Parliament to establish the proposed PRB.

Till the PRB was set up, Naik said, the petroleum ministry would perform the job of the board.

The board will be authorised to decide on whether existing 12 major oil pipelines measuring 5,365 kilometres in the country be further expanded or treated as common carrier for all oil companies.

Major pipelines are controlled by Indian Oil Company.

However, the board will be guided by the objectives of promoting competition in marketing, investment and maintaining or increasing of supplies or securing equitable distribution and availability of petroleum products and natural gas at fair price throughout the country.

UNI

ALSO READ:
The Rediff Budget Special
Money
Business News