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Naik denies report on rollback in price hike

Union minister for petroleum and natural gas Ram Naik on Thursday denied media reports of a rollback in the price of petroleum products and reduction in excise duties.

"The issue stands as it was on September 29, 2000 the day we increased the prices of petroleum products," Naik told reporters at sidelines of a seminar organised by the Chemtech Foundation.

"In fact, in the wake of increasing international oil prices, the country's oil pool account deficit is likely to reach an additional Rs 12.50 billion over the estimated Rs 236 billion by the end of this fiscal," he added.

The two developments that contributed to this phenomenal increase in the deficit were the rise in crude prices, which were at $30 to $30.74 in October, and further weakening of the rupee, considerably damaging the procurement, Naik said.

When asked whether the Centre had any plans to procure crude from other sources, Naik replied, "Within a month, the government will approach the United Nations with an oil for food proposal for Iraq in exchange of surplus wheat currently produced in the country."

The minister said he would try to present India's case for procurement of crude at lower international prices in the global petroleum ministers meet to be held in Riyadh, Saudi Arabia on November 17 to 19.

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