Petroleum Minister Murli Deora today ruled out an immediate reduction in petrol, diesel and domestic LPG prices saying the international oil prices haven't fallen so much to warrant a rate cut.
"I welcome fall in oil prices. We are watching the situation very carefully and hope there is further reduction so that we can think (of a price reduction)," he told reporters here.
A price reduction may be considered if crude oil falls to $61 per barrel, he said. The basket of crude oil India buys was at this year's lowest of $68.81 per barrel.
"There is no case for downward revision in prices now," Petroleum Secretary R S Pandey said.
Indian Oil, Bharat Petroleum and Hindustan Petroleum are currently losing about Rs 280 crore per day on sale of petrol, diesel, domestic LPG and kerosene as the government has not allowed them to align retail prices with cost of production.
Oil firms were supposed to break-even on fuel sales if the price of Indian basket of crude oil comes down to $67 per barrel.
However, with 20 per cent depreciation in value of rupee against the US dollar, the break-even point is now at $61 a barrel, Pandey said.
They are losing Rs 2.85 a litre on petrol, Rs 7.26 on diesel, Rs 29.19 on kerosene and Rs 335.03 per LPG cylinder and are projected to lose Rs 1,47,592 crore in revenues this fiscal.
The Indian basket of crude oil, which was at $129 per barrel at the time of June price revision, has averaged at $78.06 per barrel in October.
It stood at $96.81 a barrel.
