The Hindu : National : Deora rules out hike in oil prices

Online edition of India's National Newspaper
Thursday, Jul 20, 2006

National

National

Deora rules out hike in oil prices

Special Correspondent

Centre watching movement in global oil prices closely

NEW DELHI: The Centre on Wednesday ruled out any further increase in domestic fuel prices even as global crude oil prices touched a peak.

Minister for Petroleum and Natural Gas Murli Deora told newspersons that "there will be no increase in [petro-product] prices [owing to the hike in global crude oil prices]. There is no proposal under consideration for any increase in petrol, diesel, LPG or kerosene prices."

The Government, however, was watching the movement in global oil prices closely. As the country is dependent on imports for almost 75 per cent of its needs, the current high prices of crude in the international market would mean a much higher outgo.

A Ministry official said the Cabinet decision to accord limited freedom in pricing to oil marketing companies was not being implemented now.

The July average for the Indian basket of crude was $71.71 a barrel, about $4 to $5 lower than Wednesday's global price. For the new pricing scheme to come into effect, the average price has to remain above $70 a barrel for a full month. The Indian basket price averaged $66.80 a barrel in June and peaked to $72.72 a barrel this month on Tuesday.

Printer friendly page
Send this article to Friends by E-Mail

National

News Update

Stories in this Section