Though the decision by the Organisation of Petroleum Exporting Countries (OPEC) to raise output by 1.5 million barrels a day to make up for production loss caused by the strike in Venezuela has had a sobering effect on international prices of crude oil, the prices may once again start firming up in case winters in Europe and USA get more severe in the days to come.
While oil marketing companies have once again skipped increasing domestic prices of petrol and diesel this fortnight, they may have to resort to a hefty increase in case international price of crude flares up once again.
The oil companies seem to have given up their fight to secure appropriate increase in retail prices of domestic liquefied petroleum gas (LPG) on a fortnightly basis.
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These companies, which have accumulated losses of around Rs 3,000 crore between April-December 2002 because of the spurt in international prices of petroleum products and stagnant domestic prices of cooking gas and kerosene being sold through the public distribution system, have been demanding an increase of Rs 60 a cylinder of LPG.
However, in view of the forthcoming elections to four state assemblies on February 26, the government seems to have decided against any sort of announcement for increase in LPG prices while presenting Union Budget for 2003-04 on February 28. Sources in the petroleum ministry say the government may relent partially and permit and the increase of around Rs 40 a cylinder of LPG.
The international prices of the benchmark Brent crude, which were ruling around $ 29.49 a barrel on January 8, moved up to $ 30.75 a barrel on January 10 and to $ 31.76 a barrel on January 14.
Kerosene (Singapore), which was quoted at $ 33.13 a barrel on January 8, moved up to $ 33.33 a barrel on January 10, but softened to $ 33.25 a barrel on January 14.
Similarly diesel (Singapore), which was ruling around $ 31.58 a barrel on January 8, moved up to $ 32.43 a barrel on January 10 and came down to $ 32.75 on January 14.
Naphtha (Singapore), which was quoted at $ 31 a barrel on January 8, lost 20 cents to $ 30.80 a barrel on January 10, and was ruling around $ 30.33 a barrel on January 14.