Aiyar: Alarm bell

New Delhi, March 22: The government is considering raising prices of petrol and diesel as international rates have skyrocketed, petroleum minister Mani Shankar Aiyar told the Rajya Sabha today.

He said this fiscal has witnessed the highest rise in oil prices in the international market in recent times. Compared with the average Indian basket crude of $27.98 per barrel during 2003-04, the rates shot up to $37.87 during 2004-05. ?During February and the first fortnight of March, it has been as high as $42.67 per barrel,? Aiyar said.

The total under-recoveries to oil marketing companies due to non-revision of prices of petrol and diesel from April 1, 2004, to March 15, 2005, was estimated at Rs 1, 526 crore.

He said the government had tried to maintain the price mechanism for petrol, diesel, kerosene distributed in the public distribution system and domestic cooking gas in such way as to not to affect the interests of stakeholders, including consumers and public sector oil companies.