Chidambaram (TN): Union Finance Minister P Chidambaram today (Nov 6, 2004) defended the petroleum products price hike, saying it was "inevitable."

He told reporters in Tamil Nadu that the continued surge in international oil prices would have its effect on Indian prices also. UPA (United Progressive Alliance) Government had earlier affected cuts in excise and customs duties for the petroleum products to avoid the price hike, "but now it has become inevitable," he said.

Seventy per cent of the present demand for petroleum products was met through imports as indigenous production was only up to 30 per cent, he said.

The Centre would not be able to continue with the present subsidy regime for LPG since a massive investment to the tune of Rs 12,000 crore was required for various social security schemes like employment guarantee and mid-day meal schemes, he said.

Earlier, inaugurating a new ATM of the Indian Overseas bank, he announced that a special education loan mela for students of professional courses would be held in Chidambaram on November 17 in which all the public sector banks would be participating.

The banks had been asked to send the final list of students, who had been given education loan, directly to him by November 19, he said.