Govt may cut fuel prices next week

New Delhi, Oct 23 (PTI) A reduction in the domestic
prices of petrol and diesel appears to be on the anvil with
the fall in the global crude prices from a high of over USD
147 a barrel in July to USD 61 now.

Petroleum Minister Murli Deora gave no commitment in
this regard in the Lok Sabha Thursday when he was pushed by
members who sought a reduction in domestic fuel prices in view
of the fall in international crude price that touched USD 61
Thursday.

"The matter is being examined and an announcement
would be made within a week," Deora said during Question Hour
in reply to a volley of questions on the issue even as
opposition M.P.s staged a walk out.

He said that the government was awaiting the outcome
of the meeting of oil exporting countries O.P.E.C. Friday.

"Tomorrow the OPEC countries are going to make an
announcement about the future course of action and then we
will take necessary action," he said.

He, however, cautioned that though the crude price had
come to USD 61.47 "we are still losing money in all the four
products, that is, petrol, diesel, kerosene and domestic
L.P.G. What has really come in the way is the fall of rupees
versus dollar.

"One dollar was about Rs 40 to Rs 41 and now it has
gone to Rs 49 or Rs 48.50. This has depreciated the Indian
rupee to the tune of 24 to 25 per cent. We are watching the
situation."

Stating that the crude prices at USD 61 had not gone
down very much, he said "we should wait, watch and situation
and then we can take a decision on this issue."

Global crude prices have come down below 67 dollars a
barrel from a high of 147 dollars and now the government
should live upto its promise and reduce prices of petroleum
products, M.P.s said.

Deora also faced wrath of members over the "bailout"
package to airlines at the cost of the common man. The
Petroleum Minister as also Civil Aviation Minister Praful
Patel denied that any bailout has been given and said only
deferment of outstandings has been allowed.

To a question from B.S.P.'s Brajesh Pathak whether the
government will give free diesel to farmers, Deora pointed out
that even now, huge subsidy was being given on various
petroleum products. He said the question was "wrong".

But members of the B.S.P., Left and the N.D.A. were in
no mood to listen and they staged a noisy walkout.

Earlier this week, Finance Minister P. Chidambaram had
said in the Lok Sabha that India's administered prices of
petrol, diesel, L.P.G. and kerosene were based on Indian
basket at 67 dollar a barrel.

Deora said the government was waiting for further
reduction in global crude prices and would consider the matter
later. But as members got agitated and wanted an immediate
response, he said a decision would be announced within a week.