Published on Thu, Nov 09, 2006 at 08:33 | Source : Moneycontrol.com
Updated at Thu, Nov 09, 2006 at 19:48
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No reduction in petro product prices now: Deora
Consumers may have to wait for sometime before they see any reduction in the prices of petrol and diesel as the oil companies continue to make losses even after the recent fluctuations in international oil prices.
Consumers may have to wait for sometime before they see any reduction in the prices of petrol and diesel as the oil companies continue to make losses even after the recent fluctuations in international oil prices.
"The international oil prices continue to fluctuate. For instance, the Indian basket has increased over a dollar per barrel on Tuesday. In view of continuing under-recoveries on diesel, kerosene and liquefied petroleum gas (LPG), a review would be considered after a more permanent drop in international prices," according to the Union Petroleum Minister, Mr Murli Deora.
Prices for the Indian crude oil basket are now in the range of $56-58 per barrel compared to about $67 a barrel when the last increase in prices of petrol and diesel was made in June (petrol price was raised by Rs 4 a litre and diesel by Rs 2 per litre). The Indian crude basket stood at $57.97 a barrel on Tuesday ($56.87 on November 6).
`Close watch'
"The Government is keeping a close watch on the volatile prices though seasonally oil prices are expected to increase during the winter months. We do not want to decide on the prices on short-term trends. The futures market predicts a price of $64 in January and $75 in June and so any reduction now will be premature and short-lived,'' the Petroleum Secretary, Mr M.S. Srinivasan, said. The Minister and the Secretary were speaking at the Economic Editors' Conference held here on Wednesday.
Prices for the Indian crude oil basket are now in the range of $56-58 per barrel compared to about $67 a barrel when the last increase in prices of petrol and diesel was made in June (petrol price was raised by Rs 4 a litre and diesel by Rs 2 per litre). The Indian crude basket stood at $57.97 a barrel on Tuesday ($56.87 on November 6). 
