No proposal yet to de-freeze oil prices

Despite the easing of international crude oil prices, the government has no immediate plans to pass on the benefit to consumers, as it wants...

Despite the easing of international crude oil prices, the government has no immediate plans to pass on the benefit to consumers, as it wants the prices to stabilise further.

Petroleum Minister Mani Shankar Aiyar said, “There is no immediate proposal to de-freeze (the freeze in petrol and diesel prices).” “We want stable pricing policy (which will come) when we get out of the syndrome of absurd oil volatality characterised by price movements in 2004,” he said.

On ONGC’s proposal to acquire assets of Yukos, Aiyar said he will take up the issue when he meets his Russian counterpart in Moscow on February 21. “We are still interested (in taking equity) and we haven’t given up hopes yet. ONGC and (Russian state-owned firm) Rosneft continue to be in negotiations,’’ he said.

ONGC, through its foreign arm OVL, is negotiating a $2 billion payout for a 16-17 per cent stake in Yuganskneftegaz. It has offered another $4 billion as loan to Rosneft to fund its controversial acquisition of the Yukos’ main producing asset. OVL is pitched against China’s largest oil producer China National Petroleum Corp (CNPC), which has also offered to fund the Rosneft purchase of Yuganskneftegaz. “Door is still open and there is no full stop,” Aiyar said.