The revision has been in line with the change in the world prices of these petro products. User industries like power, fertilisers, shipping, petrochem etc will now have to pay more for their feedstock requirements. The prices have also been segregated for inland and port refineries. Hence, prices for Mathura, Barauni, Koyali and Panipat will factor in freight and therefore be higher than port prices.

Naphtha prices at ports are up at Rs 7,700 per tonne from Rs 7,100 per tonne, an increase of nearly 10 per cent. Prices ex-Mathura have increased to Rs 8,270 per tonne from Rs 7,670 per tonne; ex-Barauni prices are up at Rs 8,130 per tonne from Rs 7,350 per tonne; prices ex-Koyali have risen to Rs 8,020 per tonne from Rs 7,420 per tonne while ex-Panipat priceshave moved up to Rs 8,390 per tonne from Rs 7,790 per tonne.

LSHS will now cost Rs 5,000 per tonne from Rs 4,720 at the ports. Ex-Mathura prices are up at Rs 5,570 per tonne from Rs 5,290 per tonne; ex-Baruni prices have risen to Rs 5,430 per tonne from Rs 5,150 per tonne; ex-Koyali prices have risen to Rs 5,320 per tonne from Rs 5,040 per tonne, while ex-Panipat prices jumped to Rs 5,690 per tonne from Rs 5,410 per tonne.

As for furnace oil, its port price increased to Rs 4,660 per kilolitre (kl) from Rs 4,400 per kl. Ex-Mathura prices increased to Rs 5,190 per kl from Rs 4,930 per kl; ex-Barauni prices have risen to Rs 5,060 per kl from Rs 4,800 kl; ex-Koyali prices increased to Rs 4,960 per kl from Rs 4,700 per kl. Ex-Panipat prices are up to Rs 5,310 per kl from Rs 5,050 per kl.

Sources in the ministry of petroleum and natural gas have reiterated that the revised system of ex-gate refineries for port and non-port prices is here to stay as it is a realistic calculation that will protect the interestsof both the consumer and oil company. It is also likely that such revisions in prices could even be made twice a month if there are such fluctuations in world prices.

The new prices, experts say, typically epitomise the "pleasure and pain" of deregulation where hikes could also occur, as in November, when there was a 10 per cent rise in the prices of naphtha, furnace oil and LSHS.

And lest the era of administered pricing mechanism (APM) be missed for its seemingly tangible comfort levels, it ought to be remembered that none of the benefits of reduced world prices were passed on to the consumer. This is exactly what the expert technical group, now referred to as the Nirmal Singh committee, strove to reiterate in its report.

"Efficiency enhancements associated with a move from APM to MDPM (market-determined pricing mechanism) are to the benefit of all concerned in the medium to long run. The indirect benefits through better utilisation of hydrocarbon deposits, higher oil security, a more efficientallocation of resources in the country and, hence, better employment opportunities and higher income will far outweigh the direct costs."

The report has gone on to add that the "transition period can also be used to dispel some of the misplaced fears and apprehensions that exist about pricing reform in hydrocarbons. At the end of the transition period, prices will be determined by the interplay of market forces, competition and enhanced efficiency. These will lead to downward pressure on retail selling prices at the end of the transition period."

As per the committee's recommendations, the entire petroleum sector will be completely deregulated in 2002. This will involve a complete change in the import and excise duty structures during the next five years. By the end of the period, the subsidy on superior kerosene oil will be transferred to the fiscal budget of the Government.