Monday, August 22 2005 11:08 Hrs (IST) - World Time -

Karaikudi (TN): Stressing that there was no alternative except to raise the prices of petroleum products, Union Finance Minister, P Chidambaram, has said that the oil companies will incur a loss of Rs 30,000 to Rs.40,000 crore during this fiscal, if the present trend of spiralling crude oil prices continued for some more months.

When the UPA government came to power more than a year ago, the crude oil prices, which was around 28 USD per barrel, had now shot up to 67 USD a barrel. Though the UPA government was exploring various other options, 'there is no alternative but to hike the prices of petroleum products and people have to share a part of the burden', he said speaking to media persons here yesterday.

He said the world bank had recently agreed to sanction Rs 13,500 crore for developmental projects. The amount would be spent on irrigation, drinking water, roads and other sanitation schemes in the country, he said adding that the government had asked for more funds.

To a question on disinvestment, he said talks were in progress with the left parties on finding a solution to the disinvestment of public undertakings.