Deora rules out cut in retail fuel price

September 16th, 2008 - 11:05 pm ICT by IANS  

New Delhi, Sep 16 (IANS) The government will cut oil prices only if international crude prices dip below $67 a barrel, Petroleum Minister Murli Deora said Tuesday.His announcement came as the global oil price tumbled to $92 a barrel, with Brent north sea crude for November coming down to $91.34. International oil prices crossed $147 a barrel in July.

However, the gains of Indian marketing companies were offset by the sharp depreciation of the Indian rupee, which fell 48 paise Friday to breach the 46 rupee mark.

“Naturally, anybody will welcome reduction in oil prices, but public sector companies are still losing money,” Deora told reporters on the sidelines of a seminar, organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).

“The day they square off, we will consider a price cut,” he added.

While the Indian basket of crude has dropped to about $98 a barrel, the actual domestic retail prices are pegged at $67 a barrel.

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