Thursday, August 11 2005 16:17 Hrs (IST) - World Time -

New Delhi: Amid estimates of under recoveries by Oil Marketing Companies (OMCs) like IOC, HPCL and BPCL going up to Rs 40,000 crore this year due to rise in international prices, Government today (Aug 11, 2005) favored passing on some burden to consumers.

"Government's income has also taken a hit of Rs 4,000 crore while OMCs under recoveries could reach Rs 40,000 crore this year, up from Rs 20,000 crore last year. In such a scenario, some burden will have to be borne by consumers," Petroleum Minister Mani Shankar Aiyer said in the Lok Sabha during Question Hour.

"The relentless increase in international prices has put an unduly large burden on OMCs threatening to make them sick. The Government is continuously monitoring the price situation with a view to taking appropriate remedial measures," he said.

He, however, sought cooperation from State Governments saying these should adjust sales tax to reduce burden on consumers.

Unfortunately, the sales tax, which is a state subject, has not undergone a change in the last 13-14 months, the minister said but assured the House that Government would take a decision on price rise, if warranted, only after thorough consultations with its allies.