Government expects oil prices to drop to $50
09 Jan 2007
The government proposes to review cutting retail fuel prices at the end of January if the cost of crude imports stabilises below $50 a barrel.
Petroleum minister Murli Deora feels that prices haven't stabilised enough to decide on a retail price cut yet. "Prices have to be below $50 a barrel and stabilise at that level for us to consider a price cut," he said.
Prices of petrol and diesel were last cut in November 2006.
India
imports 70 per cent of its crude oil requirements. The
price of
Indian crude this week climbed to $53.48 a barrel, after
falling to its lowest level in FY 2007 last week end
to $52.87 a barrel, after having touched an all-time
high of $78 per barrel in July before dropping to around
$61.
