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Govt rules out immediate cut in petro prices

The government on Tuesday ruled out any immediate reduction in prices of petrol and diesel saying crude oil in global markets was still ruling at highs of $24-25 a barrel.

"Nothing is in store immediately," Petroleum Minister Ram Naik said when asked about any immediate downward revision of petrol and diesel prices.

Government-owned oil retailing companies had in June raised prices of petrol and diesel by about Rs 2.75 per litre and Rs 1.75 per litre, respectively, in two instalments.

Global crude oil price was still ruling at uncomfortable levels of $24-25, he said.

The Indian basket of crude, comprising Oman/Dubai crude oils of sour grade and Brent of sweet grade in the ratio of 58:42, averaged 20.53 dollars per barrel during January-March 2002. The same has shot up to $24.71 a barrel during April-June, while the June average procurement price of Indian basket of crude was $24.05 a barrel.

Naik said the high international crude prices had nothing to do with market forces like supply and demand and hoped that prices would come down soon.

Asked about the role of the government in the deregulated market where the oil companies have the freedom to fix domestic retail prices of petrol and diesel in line with global trends, Naik said: "Our role would be to prevent profiteering. We will not allow anyone to take undue advantage and fleece customers."

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