Addressing economic editors associated with various media here, Naik said after the last hike in the price of diesel on October five, its price in the international market had been going up. The increase in the diesel price was effected keeping in view its international price.

The decision to increase the domestic price of diesel linking it to international price was taken by the previous government in September 1997, Naik said.

Strongly defending the last hike in the diesel price, Naik said if this was not done, deficit in the oil pool account would have swelled up to about rs 10,000 crore. While the government had rejected the demand of truck operators and others for rolling back the increased price,it was made clear to them that the government was prepared to discuss and consider alltheir other demands, Naik said.

Although the previous government had decided to totally abolish subsidies on petroleum products by dismantling the administered price mechanism by 2002 on the basis of their international prices, the present government was yet to decide whether the schedule should be adhered to. Whatever decision on total deregulation was taken, the interest of the people would be taken into consideration, the minister said.