Govt studying cut in fuel prices

New Delhi: The Government is likely to consider reducing petrol and diesel prices if international crude oil prices fall below $52 a barrel.

Petroleum Minister Murli Deora on Tuesday said that the Government was examining the impact of fall in global crude prices, but there was no proposal to cut prices immediately.

However, Petroleum Secretary M S Srinivasan said if global crude prices fall below $52 a barrel, the Government could allow oil-marketing companies to reduce prices on petrol and diesel.

International crude oil prices are ruling at around $60 a barrel, compared to a high of $76 in August.

Srinivasan said oil companies were estimated to make a loss Rs 2,700 crore in November on sale of diesel, kerosene and Liquefied Petroleum Gas (cooking gas).

While on petrol, oil firms were making a profit of more than Rs 4 per litre, but on diesel they were incurring a loss of Rs 1.62 per litre.

In kerosene, the companies were losing Rs 14.75 per litre. On LPG, the under-recoveries were to the tune of Rs 102 per cylinder, Srinivasan said.