The Hindu : National : Cut in petrol, diesel prices unlikely

Online edition of India's National Newspaper
Saturday, Feb 03, 2007
ePaper


<SCRIPT language='JavaScript1.1' SRC="http://ad.doubleclick.net/adj/N4322.hinduonline/B2155503.3;abr=!ie;sz=468x60;ord=[timestamp]?"> </SCRIPT> <NOSCRIPT> <A HREF="http://ad.doubleclick.net/jump/N4322.hinduonline/B2155503.3;abr=!ie4;abr=!ie5;sz=468x60;ord=[timestamp]?"> <IMG SRC="http://ad.doubleclick.net/ad/N4322.hinduonline/B2155503.3;abr=!ie4;abr=!ie5;sz=468x60;ord=[timestamp]?" BORDER=0 WIDTH=468 HEIGHT=60 ALT="Click Here"></A> </NOSCRIPT>

National

National

Cut in petrol, diesel prices unlikely

Special Correspondent

NEW DELHI : With crude prices rising in the international market, the possibility of a cut in petrol and diesel back home has receded. Oil companies maintain that they are still running up losses on high-speed diesel and the rising crude prices are certainly not going to make things easy.

Crude prices, hovering around $50 a barrel during the last few days, have suddenly shown an uptrend and are ruling at $55-57. The marketing companies say they are worried what with the prices once again on the rise following intense cold weather predictions in the United States and reports that the Organisation of Petroleum Exporting Countries (OPEC) was contemplating a production cut of 5,00,000 barrels a day.

State-run Indian Oil Corporation (IOC) said it continued to lose around Rs. 35 crore a day on kerosene and domestic LPG sale with a subsidy component. According to the latest IOC's figures, it was making a profit of Rs 1.89 a litre on petrol, but was losing 26 paisa on diesel. ``These margins were based on the average of the first fortnight of January. Based on the average price of the second fortnight, we expect that the margins on petrol will increase by Re. 1 a litre and that on diesel will also turn positive. Further trends will be known only after February 15,'' a senior official said.

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

National