PTI
 
Mumbai, May 10: Petroleum Secretary M S Srinivasan today said it was time for the government to take "hard decisions" to rein in inflation, since it was running out of soft options in the face of rising global crude oil prices.

"Oil prices are very high. Soft options are running out. Hard decisions need to be taken," he told reporters here.

Crude oil prices today touched a record high at USD 126.20 per barrel. India imports 73 per cent of its crude oil needs and the cost of imports would spiral as crude inched higher, while rupee touched its 13-month low.

Srinivasan suggested a slew of measures, including imposing discipline in the consumption price.

"Price rise should be considered seriously," Srinivasan said, adding that "under-recovery (of oil companies) is expected to be at USD 42-billion by the year-end. It is not sustainable in the long run."

Denying reports about the diesel shortage in the country, the petroleum secretary said, "all the 34,000 public sector outlets supply diesel. There is no shortage." "The diesel consumption during March-April of 2008 has gone up by 25 per cent, year-to-year, which is a disturbing sign." ONGC Chairman, R S Sharma said.

"Shortage of rigs is a major challenge in ultra-deep water discovery as there is no rig available for the next two years," Sharma said.