Monday, May 26, 2008

News brief

Oil Minister Murli Deora today, 23 May 2008, said the issue of oil price revision was not on the agenda for today`s cabinet meeting. He, however, said it was necessary to take immediate steps to save oil companies. Deora said he had discussed the issue with the prime minister last night. Earlier today, Petroleum Secretary M.S. Srinivasan said an increase in domestic fuel prices was inevitable and the government would work out the size of the rise by today evening.

Prime Minister Manmohan Singh had on Thursday, 22 May 2008, denied reports that the government planned to raise retail fuel prices in the wake of a surge in global crude oil prices.

The government has not allowed oil firms to raise retail fuel prices despite a surge in crude oil prices in the past few weeks.

Petroleum Secretary M.S. Srinivasan today said a rise in domestic fuel prices is inevitable and the government is expected to work out the extent of rise by today, 23 May 2008, evening. He said the oil ministry was seeking a scrapping of import duty on crude oil and a reduction in customs duty on petrol and diesel to 2.5% from 7.5%.

Srinivasan`s comments come a day after Prime Minister Manmohan Singh on Thursday, 22 May 2008, denying reports that the government planned to raise retail fuel prices in the wake of a surge in global crude oil prices.

The government has not allowed oil firms to raise retail fuel prices despite a surge in crude oil prices in the past few weeks.

Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released today, 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%.

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