Thaindian News

New Delhi, Jan 28 (IANS) Petroleum and Natural Gas Minister S.Jaipal Reddy Friday ruled out any price rise in diesel and other non-petrol oil products, admitting that it will not be politically feasible.”First of all, the answer is in your question, (it is) politically difficult. We are working in a democracy, not in an autocracy. Whatever is politically feasible, is sensible,” Reddy said at a press conference in response to a query whether a price hike for diesel and other fuels will be too sensitive politically.

The media conference was called to announce policy decisions on preventing adulteration of petro products, following the burning alive of Maharashtra additional district collector Yeshwant Sonawane by the local kerosene mafia.

Reacting to Planning Commission’s Deputy Chairman Montek Singh Ahluwalia’s remarks to reporters at the World Economic Forum in Davos that the murder of Sonawane was a reflection of the “large price difference” which leads to the creation of an illegal market, Reddy said: “Let me make it clear. I agree with Montek in theory. But I would like him to examine if it is practically and politically feasible.”

The oil marketing companies recently raised the price of petrol by about Rs.2.50 per litre. The government had decontrolled petrol prices in June last year, allowing the oil marketing companies to set the price according to the international crude prices.

But, the prices of diesel, cooking gas and kerosene continue to be controlled and the products subsidised by the government.

The oil companies are said to be suffering a loss of Rs.7.65 per litre of diesel, Rs.19.60 per litre of kerosene and Rs.366.28 per cylinder of cooking gas in their sales.