Indian crude oil basket price above $73/bl

The case for a hike in the price of subsidised petroleum products -- petrol, diesel, kerosene and liquified petroleum gas (LPG) -- became stronger as the price of the basket of crude oil that Indian refiners buy almost touched $73 per barrel on Thursday, the latest day for which price is available. The price of Indian basket of crude oil was below $70 per barrel through most of August.

There were, however, conflicting signals from officials on the hike.

While agency reports said that the petroleum ministry is preparing a cabinet note making a case for a hike in prices of petrol, diesel, LPG and kerosene, a top oil ministry official told Business Standard said that "nothing has been discussed or decided so far."

Internationally, too, the price of crude oil was on a high, crossing $76 per barrel. "This is because crude and gasoline inventories in the US are believed to have dropped last week after Hurricane Dean disrupted supplies. Till the data comes out, we could see a rise," a Delhi-based analyst said.