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`Opec decision will bring down oil pool deficit'

Our Bureau

NEW DELHI, March 30

THE Union Petroleum Minister, Mr. Ram Naik, has said the Opec decision to raise crude output by 1.45 million barrels per day will help contain the oil pool deficit.

Addressing a news conference today, Mr. Naik said if the crude price fell to an average of $22 per barrel, the oil pool deficit would come down to Rs. 6,000 crores at the end of fiscal 2000-2001 as against the earlier projection of Rs. 13,670 crores. Aft er the Opec accord, the average price of crude oil imported by India was likely to be in the region of $20-$25 per barrel, he said.

He said though Iran had not joined the Opec agreement, it was also expected to increase production by 0.25 million barrels per day.

Mr. Naik said crude prices had already begun to soften. ``The price of Dubai crude oil has fallen to Rs. 7,550 per tonne ($23.51 per barrel) as compared to Rs. 8,180 per tonne in early March,'' he said.

He hoped the Opec members would increase production when they meet in June this year to review the oil production levels.

Mr. Naik ruled out any roll-back of the recent hike in LPG, kerosene and ATF prices. Based on the crude oil price of $25 per barrel and after taking into account the increase in the prices effected recently, the remaining subsidy level in kerosene would be Rs. 5.53 per litre and on LPG, it would be Rs. 124.96 per cylinder, an official statement said.