Government will check oil price fluctuation: Deora

New Delhi, Oct. 27 (ANI): Expressing his concern over spiralling fuel prices, Petroleum and Natural Gas Minister Murli Deora on Wednesday said the government would intervene if the global oil scenario remained volatile.

Addressing the media on the sidelines of a seminar here, Deora categorically maintained that though fuel pricing was presently in the hands of oil companies, the authorities would take action if rates continued to fluctuate.

"It has also been decided that in case of high-rise volatility in global oil prices, the government will suitably intervene in pricing of petrol and diesel. As of now, the oil companies are free to take suitable decisions on pricing of petrol on the basis of international oil prices, market conditions and commercial considerations," said Deora.

A few months ago, India freed up state-subsidised petrol prices and raised the prices of other fuels as pressure to trim a budget deficit outweighed concerns of political impact.

Consequently, diesel price were hiked by Rs.2 per litre, domestic LPG increased by Rs.35 per cylinder and kerosene rates escalated by Rs.3 per litre.

However, despite the price hike, nearly 75 percent Indians would be using LPG as a fuel source by 2015, revealed the Petroleum Minister.

"It is envisaged that the overall LPG population coverage would increase to 15 crores (150 million), that is, 75 percent of the total population from present 11.5 Crores (115 million) i.e. 50 percent of total population (by 2015)," said Deora.

Highlighting the rising demand for oil and gas resources by Indian consumers, the Petroleum Minister appealed to the citizens to conserve energy to make the nation self-sufficient.

"Oil and gas accounts for more than 40 percent of our energy sources. Although, there has been increase in domestic availability of petroleum products, the country is still dependent on imports of petroleum and petroleum products, to the extent of around 80 percent of total consumption in the country," said Deora.

India imports about 80 percent of its crude oil needs and has been seeking to increase local output and acquire energy assets overseas to feed its growing refining capacity.

It has surplus refining capacity but it continues to build new plants as it seeks to become Asia's refining hub in the coming years. (ANI)