New Delhi: Giving a quiet burial to the decision to dismantle Administered Pricing Mechanism (APM) for petroleum products, the Government today (Nov 18, 2004) said that it would control pricing of sensitive products like LPG, kerosene and diesel.

"Was there ever APM dismantling? Only an announcement was made (to dismantle APM for petrol and diesel from April 2002). Was it ever dismantled for kerosene and LPG, and since Jan 1, 2004 Government was dictating even petrol and diesel prices," Petroleum Minister Mani Shankar Aiyar told the Economic Editors Conference in New Delhi.

"We have been far more honest in saying the Government will control prices of cooking and auto fuels," he said.

The UPA (United Progressive Alliance) Government increased diesel, petrol and LPG prices on June 15, the first in 2004 and then attempted to set prices within a band, thereby giving limited freedom to oil companies, he said, adding the band had to be abandoned due to continuous rise in international prices.

"Instead of pretending that APM has been dismantled, we accept that in present circumstances, the Government will have to have a major role in what fuel prices are," he said adding that prices would be fixed keeping in mind the economic and social considerations.

Aiyar said on Nov 4, 2004 the Government decided to link petrol price to import parity and thus moved in step with global trends. This was not applied for diesel, LPG and kerosene.

"(This decision) has created an anamolous situation. This anamoly needs to be examined," he said without elaborating.