Financial Daily from THE HINDU group of publications
Friday, Sep 09, 2005
Financial Daily from THE HINDU group of publications Friday, Sep 09, 2005 |
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Industry & Economy
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Petroleum Spurt in world oil prices unjustified, says Chidambaram Our Bureau
New Delhi , Sept. 8 THE Finance Minister, Mr P. Chidambaram, on Thursday said that the spurt in world oil prices was totally unjustified and that the developing countries like India were being impoverished due to the surge in global oil prices. He made these remarks during his bilateral talks with the visiting UK Secretary of State for Trade and Industry, Mr Alan Johnson, who called on the Finance Minister here. Stating that oil producing nations are exploiting high growth rates in India and China, Mr Chidambaram pointed out that wealth was being transferred from developing countries to oil producing nations. He highlighted that due to the rising world oil prices the hit has to be taken by either the fisc or the people or the oil companies. In India, the Finance Minister said that all the three are happening. Stating that the resources of the developing nations are being diverted from the achievement of the millennium development goals (MDG) to higher prices for oil, Mr Chidambaram felt that the developed nations and the G-8 countries need to bring moral pressure on the oil producing countries to see the long-term damage to the world economy, which this is leading to. Oil bonds not before Nov: Meanwhile, the Finance Minister indicated that the Government would not issue oil bonds worth between Rs 10,000-Rs 12,000 crore to petroleum companies before November this year. This is because such a move would require Parliamentary approval. "We are working (on the oil bonds). They will be issued after getting the approval of Parliament," Mr Chidambaram told reporters on the sidelines of a microfinance function here. The Government had on September 6 announced that bonds are likely to be issued to oil retailers — Indian Oil, Bharat Petroleum, Hindustan Petroleum and IBP - to compensate them for not allowing them to raise domestic cooking gas (LPG) and kerosene prices in line with the rise in global crude prices.
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