Sunday, April 10 2005 10:06 Hrs (IST) - World Time -

New Delhi: Petroleum Minister Mani Shankar Aiyar has indicated of an "eminent" hike in petrol and diesel prices in view of crude oil prices touching historic highs.

In an interview on television channel Aaj Tak's 'Seedhi Baat', Aiyar said, "When the world crude oil prices have touched $ 60 a barrel, responsible Indians should also be ready to bear the burden," a press release issued by the channel said.

Public sector oil firms had sought Rs 4.69 per litre hike in petrol and Rs 5.18 a litre increase in diesel prices due to hardening of crude oil prices, increase in excise duty, levy of additional road cess and additional cost incurred in supplying ultra-low sulphur fuel from April one.

Aiyar, however, did not say when the hike would take place. "I don't know when the prices will change. The Cabinet will decide on the prices."

"Government has put minimum burden on consumers. The maximum burden is being borne by oil marketing companies (who are selling products below cost)," he said.

Dismissing any gears of shortage of petroleum products, Aiyar said India had enough foreign exchange reserves to buy its crude oil requirement.

"India has a foreign exchange reserve of $ 140 billion, we can buy crude oil anytime to meet our requirement," he said.

Aiyar blamed speculation for the spike in international crude oil prices. Oil production has not been reduced in last few years and there were enough supplies to meet the world demand. "It is speculation on the New York Mercantile Exchange which is driving the prices up."