'Aim is to wipe out oil pool deficit'

By Our Special Correspondent

MUMBAI, OCT. 2. The Minister for Petroleum and Natural Gas, Mr. Ram Naik, today categorically ruled out the possibility of reducing the oil prices in view of the protest resignations of Ms. Mamata Banerjee and Mr. Ajit Panja from the Union Cabinet.

At a press conference here, he said he had no other alternative but to increase the prices and that he had taken care to ensure that only one-third of the burden of the inflated bill was passed on to the consumers unlike in the past.

``I am confident that the Prime Minister will be able to resolve the problem (of the Ministers' resignations),'' he said. If it were possible to give a concession of even 50 paise, he would not have even proposed the rise to that extent in the first place, the Minister said. Mr. Naik, whose appeal to the States to reduce the sales tax on the petroleum products attracted a lukewarm response, said no State had sent him any letter. He would talk to Chief Ministers and State Finance Ministers to convince them of the need to reduce the sales tax.

The States should pass on to the consumer whatever additional tax the price hike generated because they could absorb the shock better than individuals, he said. ``The Centre has a still higher capacity and hence we have reduced the import and excise duties on the crude oil and petroleum products.''

He appealed to parties not to politicise the issue and come out with alternatives which he was prepared to discuss.

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