Monday, August 14 2006 10:34 Hrs (IST) - World Time -

Dehradun: Petroleum Minister Murli Deora has asked Finance Minister P Chidambaram to cut excise duty to avoid raising petrol and diesel prices that has been necessitated due to surge in international prices.

"I have written again to Chidambaram for reducing excise duty," he told reporters here yesterday (Aug 13, 2006).

The spurt in global crude oil prices warrant a Rs 6.31 a litre hike in petrol, Rs 8.25 per litre increase in diesel, Rs 18.69 per litre raise in kerosene and Rs 166 per cylinder increase in LPG prices.

Deora said the Government wants to pass on the least possible burden to consumers but any duty relief should not hamper Government's programme.

"He (Chidambaram) has to see that the Budget is not affect and ensure money to all welfare programmes," Deora said adding ministeries of petroleum and finance were working together to resolve the crisis.

Petroleum Secretary M S Srinivasan said Government has given freedom to public sector oil firms to revise petrol and diesel prices every month but they have not increased prices in line with rise in international prices.

"Oil companies may have been given permission but they think time has not yet come to for another round of hike," he said.

The state-owned companies have not revised prices since the last hike on June 5 as the compensation given to them in form of government oil bonds and assistance from companies like Oil and Natural Gas Corp (ONGC) has been found adequate to cover for the revenue loss arising from selling the fuel below the production cost.