NEW DELHI, SEPT 7: Worried over soaring global crude prices, which broke a 10-year-record on Wednesday by breaching $ 34 a barrel mark, India today urged OPEC nations to bring down prices to $26 a barrel.The OPEC oil ministers will meet in Vienna this week-end to act to ease record crude prices. "I also briefed the Prime Minister yesterday (just before his departure for the US) about the increase in international prices and also the OPEC meeting on September 10. He will discuss the matter with leaders of several countries during his visit to the United Nations and the US," Naik said."Acting US Ambassador A A Thibault met me today to share his country's concern over the international oil prices. he will communicate mutual concerns to US President," Naik said.Naik reminded the OPEC in his communication that it had decided in its June meeting to maintain the prices in the band of $22 to 28 a barrel which would average $26 and said that India was expressing the feelings of the entire developing countries.Oil prices hit a 10-year high on leading world markets amid skepticism that oil producers would be willing or able to raise production quotas enough to ease the pain for Western consumers. The price of light sweet crude jumped $1.07 a barrel yesterday to $34.90 a barrel while the price of light sweet crude stood at $33.83 a barrel.Acting US Ambassador to India Albert A Thibault met Naik today and asked the developing nations to join together to persuade OPEC in cutting the crude oil prices, the sources said.Naik had earlier said that the government was planning a three-pronged strategy to contain the steadily rising oil pool deficit in the country in the wake of an upward movement in global crude prices. The government is planning to adopt a combination of measures by increasing the prices of petro products, issuance of petro bonds to oil companies and reduction in import and excise duties in the wake of rising global crude oil prices, he said.He said in the absence of any hike in domestic prices of petro products to offset import costs, the oil pool deficit was likely to cross Rs 15,000 crore in 2000-01. Discussions are going on with the finance ministry for deploying part of the extra receipts amounting to Rs 12,000 crore generated from the excise and import duties annually to the petroleum ministry, to offset the shooting oil pool deficit, Naik said.Nearly 70 per cent of India's crude and petroleum product requirements is met through imports.Naik ruled out any hasty steps including a hike in domestic prices to offset the impact of firming up of international oil market, saying, "I will still wait for the outcome of the OPEC meeting and the return of Prime Minister and Finance Minister."Asked about his plans to mitigate hardship and ease pressures on oil pool deficit, likely to cross Rs 15,000 crore mark during the current fiscal, Petrolum Minister said it could be a combination of three options including a partial rise in domestic prices. "A combination of increase in petro products prices,issuance of petro bonds to oil companies and reduction in import and excise duties is being considered," Naik said.Petroleum Ministry is also in discussion with the finance ministry for deploying part of the extra receipts amounting to Rs 12,000 crore generated from the excise and import duties during current fiscal to offset the shooting oil pool deficit.In his budget for the current fiscal, Sinha has estimatedexcise and import levy collections at Rs 25,000 crore while the government is likely to get over Rs 37,000 crore.
