The Hindu : Business : No immediate plans to cut fuel prices: Deora

Online edition of India's National Newspaper
Wednesday, Sep 27, 2006
ePaper

Business

Business

No immediate plans to cut fuel prices: Deora

Special Correspondent

`If price of crude falls below $50, a decision may be taken'

NEW DELHI: The Central Government on Tuesday ruled out any immediate cut in the prices of petrol and diesel despite the decline in international crude oil prices.

Speaking to newspersons here, the Petroleum Minister, Murli Deora, maintained that a price reduction could be considered only if crude oil prices dip below $50 a barrel.

"It is not an appropriate time to cut prices... Indeed, the international oil prices have declined over past two-three weeks, which is a welcome trend, but they [oil prices] have not fallen to levels warranting any cut in domestic sale prices,'' he said after flagging of a motorbike expedition here.

Mr. Deora pointed out that although the fall in oil prices has reduced the losses of oil companies on the sale of petrol, diesel, domestic LPG and kerosene, the decline has still not rendered the sale of fuel profitable. "Losses are still there. I wish international prices fall further," he said. In June, the Government had hiked the prices of petrol and diesel prices by Rs. 3 and Rs. 2 a litre, respectively, as a consequence of the surge in international crude oil prices.

The Indian basket of crude oil is now ruling at $56.28 a barrel, way below the historic level of $70 a barrel recorded last month. With the current decline in oil prices, the oil marketing companies have managed to break even on the sale of petrol while still incurring a loss of Rs. 5 on each litre of diesel.

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

Business