Date:10/02/2003 URL: http://www.thehindu.com/2003/02/10/stories/2003021004751100.htm

National

Fear of attack led to oil, gas price hike

MUMBAI FEB. 9. The Union Petroleum and Natural Gas Minister, Ram Naik, said here today that apprehensions of a possible U.S.-Iraq war, stoppage of oil production in Venezuela and the cold weather in the U.S., Japan and China are responsible for the prices of petroleum products and gas going up in recent times.

Addressing a public meeting on the occasion of the inauguration of the anti-sea erosion bund wall at Palghar near Mumbai, Mr. Naik said that the possibility of an attack on Iraq had been mainly responsible for the price rise in petroleum products.

He said that Venezuela's large-scale petroleum production has a big share in the global market.

The country stopped the production of petroleum products in December 2002 and January 2003 due to workers' strike, he said.

Mr. Naik said that there has been severe cold in the USA, Japan and China which pushed up the demand for gas.

Domestic prices went up in line with the prise rise in international market.

UNI