Fuel price hike not the only option: Murli Deora

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

The New Year has started with a crude shock-with oil prices touching the USD 100 per barrel mark for the first time ever. The govt is finding it tough to deal with the crude realities given their political compulsions. With 4 state elections slated this year, petroleum minister Murli Deora is pushing for a duty cut to cushion the impact.

Petroleum Minister Murli Deora said the government is considering a duty cut to deal with rising crude prices, reports CNBC-TV18.

Deora stated that a price hike is not the only option. The Left is ready to co-operate for a solution on oil price and the GoM will meet soon to take a final call on prices, he commented.

 

On crude soaring to USD 100//bbl 

It is a matter of concern. We have to tighten our belts further we must see that we don't spend so much oil. We must try to give promotion to conservation ideas and this is what we are trying to do.

 

Q: Would you seek a cut in duties?

 

A: I can't say just now. These things are being discussed. We will discuss everything in the next GoM.

 

Q: So when is the GoM meeting?

 

A: They are fixing a date today.

 

Q: And all these options would be considered?

 

A: Yes, we will discuss whatever alternatives are available.

 

Q: How likely is a fuel price hike given the current situation of crude?     

 

A: I can't say that

 

Q: Have you spoken to the allies because that is the main issue here?

 

A: Mr Yechury and I discussed on the phone, but not in detail. So we are in touch with our people.

 

Q: Does the price hike now look inevitable?

 

A: The price hike is not the only solution. There are other solutions also. We have to see that we get the best solution.

 

Q: Are you now going to really press for a duty cut from the FM?

 

A: I can't say anything on this.

 

Q: What did the left say? Are they now okay with duty cut and price hike and all that? 

 

A: I can't say that.

 

Q: But you said that spoke to the Left leaders?

 

A: They are very cooperative; I must say the Left is very cooperative. All of them are very cooperative. Everybody knows what is happening.