NEW DELHI, JAN 15: Petroleum and Natural Gas Minister Ram Naik today indicated that the government was unlikely to increase prices of petrol and diesel before the budget as the finance ministry was currently considering a proposal to transfer about Rs 7,000-8,000 crore to bridge the oil pool account deficit.Naik said the petroleum ministry had sought the amount from finance ministry as the sharp increase in petroleum products globally had resulted in additional accrual of about Rs 7,000-8,000 crore in the form of customs duty to the government during the current fiscal. "As per the earlier formula, petrol prices were to be revised in every two months, but after studying the matter, I felt import duty rises with price hike, so I suggested to the Finance Minister to reduce the oil pool account deficit by allocating Rs 7,000-8,000 crore excess available from import duty and he is considering it," Naik said.Participating in the `Janata Ki Adalat' programme to be telecast on Star TV tomorrow, he said his ministry would clear a country-wide gas connection waiting list of 1.10 crore by the year end, according to a release from the Independent Media Private Ltd.SINGAPORE: India's diesel buying spree is set to increase this weekend with traders estimating on Friday that it could buy between four and 10 more cargoes. India has already dramatically tightened up the Asian diesel market with purchases totalling 4,50,000 tonnes in the past two weeks following a series of refinery problems.Last week it bought by tender eight cargoes for January and February, or around 3,15,000 tonnes (2.3 million barrels), double market expectations. Late last year, India became self sufficient in diesel with the start-up of the 5,40,000 barrels-per-day (bpd) Reliance Petroleum refinery.But industry officials said technical problems at some refineries had led to a shortage of the 0.25-per cent sulphur diesel that India uses. After last week's purchase of eight cargoes, India issued a tender seeking yet more diesel.Traders said India could purchase between four and 10 cargoes this weekend in the latest tender, which closed earlier on Friday and is valid till Saturday. The tender sought 30,000-tonne cargoes of 0.25 per cent sulphur gas oil for delivery into Goa and Bombay and 40,000-to- 45,000-tonne cargoes into Madras and Haldia.Sellers were requested to offer cargoes for delivery during any of these dates January 24-31, February 1-7 and February 8-15, February 16-23 and February 24-29, traders said. But the purchases will provide direction next week for the diesel market.Prompt diesel swaps in Singapore were firm late on Fridayat $25.90 per barrel, up 15-20 cents from Thursday. Backwardation between the prompt month and the second month has stretched out to around 75-80 cents per barrel, out from last week's 60 cents, largely due to India's buying spree. The spot market differential has also jumped to around 50 cents per barrel on Friday owing to the Indian buying.
