Stress on stepping up crude output

By Barun Das Gupta

GUWAHATI, OCT. 19. India's crude import bill will go up from Rs. 53,400 crores to Rs. 81,000 crores due to the trebling of prices in the international market from around $11 per barrel in February 2000 to $ 35 to 36 now, the Minister for Petroleum and Natural Gas, Mr. Ram Naik, said today.

He said the deficit in the oil pool account would be about Rs. 24,000 crores, but it was expected to be reduced by Rs. 5000 crores by increasing petro product prices and reducing import duty on crude and excise duty on diesel and petrol. Only one- third of the higher prices would be passed on to the consumer.

The Minister, who was here to attend the signing of a gas supply agreement between Oil India Limited and the Reliance Assam Petrochemicals Limited for a gas cracker project in Upper Assam, said the country was now importing 70 per cent of its crude requirement and the consumption of fuel oil was going up steadily.

The Government, therefore, decided to lay more emphasis on increasing indigenous crude production, particularly in Assam and the Northeastern States. Global tenders had been invited for leasing out 24 blocks in the country for exploration to private, public and joint sector companies. From 1989 to 1999, only 21 blocks had been leased out.

Mr. Naik said permission had been given for opening 21 new petrol pumps, 59 LPG agencies and 60 kerosene agencies in Assam. A new LPG bottling plant would be opened near Guwahati next month and another would come up at Digboi by December 2001. Till September, 1.10 crore applications for new gas connections were on the wait list. This number was wiped out last month. Now new connections could be given immediately.

PTI reports:

Mr. Naik said he had urged all Chief Ministers to reduce sales tax on oil, as import and excise duties had been reduced but so far none had officially sent any reply.

He stressed the need for uniformity in the sales tax structure as the present system created disparity in prices of commonly used goods in different parts.

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