The domestic prices of petroleum products will not be raised in view of the decision of the Organisation of Petroleum Exporting Countries (Opec) to postpone cuts in oil production till January 1, 2002.
Responding to Opec's announcement of conditional cuts to be effective from January 1, petroleum minister Ram Naik said it has resulted in a drop in prices in the international oil market. "This situation suggests that oil prices may remain at lower levels till December 2001."
The lower oil price levels being witnessed since mid-September have been favourable for the oil pool deficit of the country, the minister said. "In the backdrop of the low-price scenario, the oil pool deficit of Rs 13,000 crore as of October-end is expected to decline. Hence, there is no need to increase the prices of petroleum products in the domestic market," Naik said.
In its meeting yesterday, Opec had formally announced plans to cut oil production by 1.5 million barrels per day from January 1, 2002, subject to the condition that non-Opec exporters like Russia, Norway and Mexico also cut their production by half-a-million barrel per day.
