Tuesday, April 26 2005 19:45 Hrs (IST) - World Time -

New Delhi: Left parties today (Apr 26, 2005) asked Government not to raise petrol and diesel prices and instead cut excise duty and put the increase in road cess in abeyance to contain the impact of surge in international oil prices.

"We would not like the burden (arising from increase in international crude prices) to be passed on to consumers," Communist Party of India Marxist (CPM) leader Sitaram Yechuri said, after an hour long meeting with Petroleum Minister Mani Shankar Aiyar on the issue of fuel pricing.

Petrol price need to be raised by Rs 5.77 per litre and diesel by Rs 5.26 per litre in step with the surge in cost of raw material (crude oil), increase in taxes and additional cost for producing cleaner fuel.

Finance Minister P Chidambaram had yesterday (Apr 25, 2005) rejected Aiyar's plea for cut in duties saying the duty changes announced in budget were revenue neutral.

"When all the sectors of the economy are bearing the burden of increase in international oil prices, the Finance Ministry too ought to take a part of the burden by way of reduction in excise duty on petrol and diesel," he said.

He also asked Finance Ministry to keep in abeyance the increase in road cess on petrol and diesel to Rs 2 per litre form Rs 1.50 a litre now.

The Left also reiterated its demand for setting up a Price Stabilisation Fund out of the proceeds of cess collected on crude oil.

The Central Government has collected a sum of about Rs 51,007.60 crore as cess, of which only Rs 902.40 crore has been accrued to Oil Industry Development Board.

Aiyar said that he would appraise the Prime Minister Manmohan Singh and Finance Minister about the concerns and demands of the Left allies.