Oil prices to follow global trend: Deora

The government will cut petrol and diesel prices when there is a sustained drop in global crude oil prices, Petroleum Minister Murli Deora said today.

"International oil prices continue to fluctuate. The government is keeping a close watch on the volatile prices," he said in a written reply to a question in Lok Sabha here.

The Indian basket of crude oils was at about $67 per barrel when petrol and diesel prices were last raised in June 2006. It came down to $57.26 a barrel in October.

International crude oil prices went up to $75 per barrel in August but domestic retail prices were not raised despite the fact that the June hike had not completely covered surge in international prices, he said, adding seasonally oil prices were expected to increase during the winter months.In the first half of 2006-07, the under-realisation of sale of petrol, diesel, LPG and kerosene was Rs 33,200 crore.

Deora also said oil companies had sought another upward revision in prices of petroleum products in July 2006 when the Indian crude basket touched $70.69 per barrel.