New Delhi: The Centre on Tuesday hinted at another round of petrol price cut when Petroleum Secretary M S Srinivasan said the government may reduce petrol and diesel prices if the current fall in international oil prices continues.
He, however, noted that for such a reduction to happen, crude prices will need to decline below $50 a barrel level. "The fall in international crude prices is of much relief to us. We are closely monitoring the emerging scenario. Certainly, we will consider a revision if prices fall further," he said.
In November, the government had cut petrol and diesel prices by Rs 2 and Re 1 a litre respectively when the basket of crude that
Indian refiners buy was at $56.8 per barrel. The Indian basket has since fallen to just under $53 per barrel, the lowest this fiscal.
"There may be a scope for a cut in petrol and diesel prices if the Indian basket falls below $50 per barrel," Srinivasan said. State-run oil companies are currently incurring a loss of Rs 0.22 per litre on petrol and Rs 1.42 a litre on diesel, he said. Kerosene is being sold at a loss of Rs 13-14 per litre and domestic LPG at a loss of Rs 50 per cylinder.
Indian Oil, Bharat Petroleum, Hindustan Petroleum and IBP together are losing about Rs 100 crore a day on fuel sales. In the first half of 2006-07, the under-realisation on sale of petrol, diesel, LPG and kerosene was Rs 33,200 crore.
(With agency reports)
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