SEPT 28: Finance Ministry has also in-principle agreed to part with Petroleum Ministry's Rs 4,429 crore deposits with the exchequer and issue of oil bonds for mitigating one-third of the oil pool deficit, estimated to touch Rs 23,600 crore during the financial year without any price correction, he said.Naik, however, reiterated that the government will take the "hard" decision of hiking prices of five controlled products - petrol, diesel, kerosene, LPG and aviation turbine fuel (ATF) - by September 30."Prices of petro-products will be hiked to the extent of one-third of the oil pool deficit. we have ensured that only the least burden is passed on to the common man," he said adding his ministry has also initiated a move to cut up to 10 per cent petroleum product consumption by government machinery with a view to reduce non-Plan expenditure on the product.Stating that price hike would be done in a manner where the burden did not come disproportionately on consumers, Naik said "We will pass on only one-third burden (about Rs 8,000 crore) to consumers."Besides managing one-third deficit each through price hike and cut in taxes, the ministry would get its deposits of Rs 4,429 crore with the exchequer and it would float oil bonds to cover the balance deficit (about Rs 3,500 crore), he said.The Finance Ministry was expected to mop up about Rs 41,000 crore from excise and customs as against the budgetary target of Rs 27,000 crore during 2000-01 on account of spurt in global crude prices, Naik said. The Finance Minister agreed to cut duties to pass on some of the surplus accrual, he added.At the present price level, kerosene was being subsidised by Rs eight a litre, while it was Rs 170 a cylinder on cooking gas. Similarly, diesel was now being subsidised by Rs five a litre and ATF by Rs 2 a litre while consumers of petrol were being charged one rupee more to subsidise other products.
