Sunday, November 13 2005 19:16 Hrs (IST) - World Time -

Chennai: Union Petroleum Minister Mani Shankar Aiyar today (Nov 13, 2005) expressed the hope that there will not be any further hike in the prices of petroleum products following declining crude prices.

However, any decision on reduction in prices would be taken only after the Dr S Rangarajan Committee submitted its recommendations, he told reporters here.

"I hope there will not be any hike in the next four months of the current fiscal. Crude, which was selling at USD 70 per barrel has come down to USD 57 now. I hope to manage the situation without any hike," he said.

Asked whether there was any chance of reduction in petroleum products prices, he said Prime Minister Manmohan Singh had constituted a committee, headed by Dr S Rangarajan to suggest ways to rationalise the taxes.

"Only after the committee submitted its recommendations, can a decision on reduction be taken," he said.

He said the estimated losses of oil companies was Rs 35,000 crore now against the initial estimate of Rs.40, 000 crore.

Denying that the oil companies had just passed on the burden of international crude price hike to consumers, he said they absorbed 51 per cent of the hike and the Union Finance Ministry 36 per cent.

"We have passed on only 13 per cent of the hike to the consumers".

Aiyar, who called on the DMK president M Karunanidhi, described the meeting as a 'courtesy call'.