<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[India will improve its fuel distribution network to prevent shortages during the festival season, and will look at ways to price diesel differently for industry and retail customers, senior officials said on Tuesday.
Oil Secretary R.S. Pandey said the government would strengthen the distribution network to prevent fuel shortages during the festival season which starts in August and would also initiate steps to manage demand.
India subsidises transport fuels as well as cooking gas and kerosene to help the poor and try to limit inflation.
The government raised state-set fuel prices by about 10 percent in early June as global oil prices were surging to record highs, but despite this demand for diesel has soared.
Rising fuel costs have helped pushed up annual inflation to 12.4 percent in early August, its highest in more than 13 years.
Sarthak Behuria, chairman of state-run Indian Oil Corp told reporters that industry's use of subsidised diesel was pushing up demand and forcing refiners to increase imports, and the oil companies wanted to charge firms market rates.
Oil Minister Murli Deora said he favoured a consistent, long-term pricing policy for diesel that balanced social concerns with business realities. He declined comments on prospects on another fuel price rise.
The oil ministry was seeking changes in tax rules to allow Reliance Industries to supply refined products from its export-oriented refinery to state refiners, Behuria said.
India gives tax concessions to export-oriented projects, but domestic sales from such plants are heavily taxed.
(Reuters)