"The Planning Commission believes that it is logical to pass on (increase in oil prices to customers) and make special provisions where they are needed," Montek Singh Ahluwalia, deputy chairman said on the sidelines of an ADB seminar in Hyderabad.
Increased global oil prices are being paid by the country, he said to support his argument. He said duties should be reduced to compensate for increase in international prices only if there is general surcharge on duties so that revenue is not lost and there is no adverse impact on fiscal deficit.
Finance Minister P Chidambaram had on Wednesday said any decision on raising petro prices could be taken only after consulting UPA allies. "It is no longer an economic issue but a political one when oil prices cross $50-60 a barrel," Chidambaram had said.
He said the government has to consult its allies before taking any such decision. "It is for the petroleum minister to meet them. So far it has not been done," he added.
RBI governor Y V Reddy had also said on Wednesday the government has to take some decision on oil prices pass-through, which is not dependent on the daily movement of oil prices.
International oil prices are ruling at over $70 a barrel, but India, which imports 70 per cent of its crude oil, has not raised petroleum prices in 2006.