No plan to trim Indian fuel price rise-minister

INDIA: The Indian oil ministry has no plans to trim increases in fuel prices imposed this week despite pressure from the Congress Party, which heads the ruling coalition, Oil Minister Murli Deora said.

Congress has called for the 9.2 percent rise in petrol and 6.6 percent rise in diesel prices to be reduced, while its communist allies, who give it crucial backing in parliament, have begun street protests against the increases and have called for nationwide demonstrations on June 13.

Adding to a chorus of opposition, 5,000 of supporters of the Hindu nationalist Bharatiya Janata Party brought traffic to a standstill in the capital as they protested against the increases.

"We want a complete roll back in prices. We will intensify our agitation and hit the streets if the government does not reverse its decision," said party leader Mukhtar Abbas Naqvi."The government is not sensitive to the common man."

Indian newspapers reported the government was considering a partial roll back in the price increase for petrol but would leave diesel prices at the new level.

But Deora said there were no such plans.

"No proposal is under consideration at my ministry's level," he told New Delhi Television.

India increased the prices to cut losses at state-run refiners facing soaring crude oil prices, but left unchanged prices for kerosene and cooking oil, which are widely used by the poor. India imports two-thirds of its oil.

The oil minister met Sonia Gandhi, the chief of the ruling coalition and president of the Congress Party, on Tuesday to discuss the price increase amid speculation it might be trimmed.

"Our position remains the same as we had articulated yesterday," party spokesman Abhishek Manu Singhvi said."We have said ultimately it is for the government to decide. We don't expect the price rise to remain zero. We are asking for a softening of the load."

New Delhi, Thursday, Reuters