The continuous slump in global crude oil prices will not have an effect on the current retail prices of petroleum in India as the government is not considering any options to cut them down.
Speaking to media, union petroleum minister Murli Deora said, “The drop in crude prices is a good sign but the government cannot reduce retail prices since state-run oil PSUs continue to lose money on fuel sales.”
Crude oil prices have fallen below 113 dollars a barrel this week from an all-time high of $147 per barrel witnessed last month. Fuel prices in India are fixed at 68 dollars per barrel.
According to Deora, “Our retail prices are pegged much lower than the current international crude prices and there is no scope for reduction in petrol and diesel prices as of now.”
The Government, in June, had raised the retail prices of petrol by Rs 5 per litre, diesel by Rs 3 a litre and domestic LPG by Rs 50 per cylinder.