It will be difficult to maintain the prices at the current level: Chairman designate of IOC M S Ramachandran New Delhi: Indian Oil Corporation (IOC) on March 26 said that hike in prices of petrol and diesel had become imperative with surge in international oil prices and the only alternative to the government is to cut duties.

"It will be difficult to maintain the prices at the current level. Other means to hold prices is if government considers a cut in excise duties. We have told government what will be the impact and what relief are required," Chairman designate of IOC M S Ramachandran told reporters here.

Ramachandran, who would take charge of the corporation from M A Pathan on April 1, said "IOC has submitted its views and the government has to look at these," adding that an increase of four Dollars a barrel in global crude prices since presentation of Union Budget (2002-03) would impact the company by about Rs 400-500 crore annually.

However, he said the government had desired that prices be held steady for three months, which is the time needed for us to understand implications of dismantling of Administered Pricing Mechanism and work out new pricing strategy.

Admitting that there could be differential pricing for different parts of the country on account of local taxes and freight charges, he said, "We are working on a mechanism for determination of retail selling prices in the free market."

Both Ramachandran and Pathan said the consumers interest would be foremost in devising the price strategy and added that country would see price competition between different companies from the next fiscal.

PTI