Admitting that oil prices are the single biggest worry for him, Finance Minister P Chidambaram has hinted at revision in petroleum prices saying consumers too would have to share the burden.
"We are looking for ways to distribute burden (of surging global oil prices) between government, oil marketing companies and refineries. But sometimes circumstances are out of our control," Chidambaram said.
Stating that no government would like to hike petroleum prices, he said raising prices depends on factors, which were beyond government's control.
"When we think that it (oil prices) has cooled off, suddenly it shoots up. Oil prices are the single biggest worry that is looming in the horizon but we have to be very careful about external factors," the finance minister said.
Meanwhile, the petroleum ministry is understood to have sent an official note to the Prime Minister's Office seeking 12 per cent hike in diesel prices, which is expected to push up diesel prices by Rs 3.75 per litre.
Petrol, on the other hand, is proposed to be hiked by Rs 2.60 per litre.
Chidambaram has been holding talks with Petroleum Minister Mani Shankar Aiyar as well as senior Left party members.
Chidambaram said the options suggested by the Left could neutralise 50 per cent impact of the hike of the global oil price but asked who would bear the remaining burden.
The increase in prices would lead to fall in use of oil, which would then result in decreasing prices. "We will control the situation. There is no need to worry. First of all right economic decisions have to be taken and then its impact has to be lessened as per the political need".
He pointed out that the country had to buy crude oil on an average at $28 per barrel in 2003-04 which shot up to $39 the very next year and $51 dollars at the beginning of this fiscal.
"The country does not have adequate petroleum resources and is compelled to buy 75 per cent from abroad for which prices are not determined by us," the finance minister said.
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