Tuesday, August 9 2005 16:38 Hrs (IST) - World Time -

New Delhi: Concerned over crude oil prices touching a record $64 a barrel in the international market, Petroleum Minister Mani Shankar Aiyar today (Aug 9, 2005) said the Cabinet will decide on raising domestic fuel prices in line with the spurt.

"I am worried but not too worried... still the Government has resources to manage our requirements," Petroleum Minister Mani Shankar Aiyar told reporters in New Delhi.

Petrol is currently being sold at Rs 3.63 a litre below the cost while diesel is under-priced by Rs 4.15 per litre. LPG is being sold at a loss of Rs 92 per cylinder and the public sector oil firms were losing Rs 11 on sale of every litre of kerosene.

Aiyar said the issue of raising fuel prices rested with the Cabinet and his ministry had already sent its proposal to it.

"All the information in this regard has been shared with the Cabinet... that (price increase) is for the Cabinet to decide," he said.

Petroleum Minister said the spurt in international prices was based on apprehensions of disruption in supplies even though there has been no interruption in the past 18 months when the apprehensions started driving prices upward.

"There is nothing in global economy to warrant such a rise. Not one drop of oil has been lost. It has become a fashion statement rather than any kind of reflection on global realities," he said.

Aiyar said the Government would try to do a balancing act between the interests of consumers and the oil firms, which have lost more than Rs 9700 crore in revenues this fiscal due to the price freeze.