Government to consider roll-back of fuel price hike in a week: Deora
23 Oct 2008
Mumbai: A day after the government ruled out any immediate possibility of a reduction in the prices of petrofuels, petroleum minister Murli Deora today agreed to consider a roll-back of the price hike announced in June, in view of the falling global prices of crude oil.
The government had ruled out the possibility of an immediate reduction in the administered prices of petroleum fuels, at current prices of crude oil, but had promised a review once global crude prices dropped below $67 a barrel.
Now that crude prices have come down to levels around $67 a barrel, members of parliament have demanded that the government live up to its promise and reduce prices of petroleum products.
Crude oil prices dropped to a 16-month low on Wednesday, dropping more than $4 a barrel to $67.50 a barrel as the global financial crisis made a big dent in petroleum fuel consumption.
Crude for December delivery touched a low of $67.50 per barrel in electronic trading on Globex, the weakest level since late June 2007.
''The matter is being examined and an announcement would be made within a week," Deora said in reply to a spate of supplementaries during question hour.
Finance minister P Chidambaram had said in the Lok Sabha, earlier this week, that India's administered prices of petrol, diesel, LPG and kerosene were based on Indian basket at $67 a barrel and oil companies would break even when crude prices fall below this.
To persistent questions by the opposition and ruling party members, Deora said the government was waiting for further reduction in global crude prices and would consider a price revision once crude prices stabilise below $67 a barrel.
