Monday, May 16 2005 15:08 Hrs (IST) - World Time -

New Delhi: Left parties today (May 16, 2005) vehemently opposed any increase in petrol and diesel prices and instead asked the Government to restructure duties.

"We have asked the Government not to increase prices but consider other options," Communist Party of India (CPI) general secretary D Raja said after meeting Finance Minister P Chidambaram in New Delhi.

Petroleum Minister Mani Shankar Aiyar was also present during the meeting.

Communist Party of India Marxist (CPM) Member of Parliament Dipankar Mukherjee said that the Government should put in abeyance the increase in road cess and rollback hike in excise duties on petrol and diesel.

Petrol prices need to be raised by Rs 4.59 a litre, half of it (Rs 2.52) on account of increase in excise duty. Similarly, diesel prices need to be raised by Rs 4.97 per litre, including Rs 1.53 due to excise effect. The increase in petrol and diesel prices also includes Rs 0.61 per litre due to increase in road cess to Rs 2 per litre.

Fuel prices were last revised in November 2004 and since then Government has not allowed the oil firms to raise prices despite international crude prices touching new highs.

Oil marketing companies like Indian Oil Corp, BPCL and HPCL are pitching for a price hike citing huge under-recovery on sale of petroleum products. Gross under-recovery on petrol, diesel, LPG and kerosene for 2004-05 and April 1 to May 15 is Rs 20,310 crore and Rs 5,860 crore respectively.