Surprise News before India Budget 2007 : Petrol price cut likely on Jan 31
admin January 13th, 2007
AS per the news story published on IBNLIVE.com
Another round of petrol price cut is imminent, or so it seems. But for this to happen, the crude price levels in the international market have to drop just a few points more to hit $50 a barrel. Currently, the Indian basket of crude oil is averaging around $51 a barrel.
Petroleum Secretary M S Srinivasan, who had dropped a hint about an impending cut in the prices of petroleum products last week, revealed on Friday that the government is going to review petrol and diesel prices on January 31.
“A reduction in the prices of petrol and diesel is likely if international crude prices fall further,” he said. He, however, insisted that at the current levels of crude prices in the international market, it’s not possible to effect a downward review of the petroleum prices.
“There will be a review on January 31. But if the current average continues, there will be no cut. For a reduction to happen, the prices have to fall further,” PTI quoted him as saying
International crude prices have fallen to 19-month-low this month. The Indian basket of crude oil is currently averaging around $51 a barrel and a reduction in petrol and diesel prices was possible only if crude prices slip below $50 a barrel on a sustained basis.
Earlier, Srinivasan had said that the government may reduce petrol and diesel prices if the current fall in international oil prices continues and crude declines below $50 a barrel level.
The last revision in the petroleum prices took place in November when the prices of petrol and diesel were cut by Rs 2 and Re 1 a litre respectively after the basket of crude that Indian refiners buy fell to $56.8 per barrel.
New is surprising as governments are normally hike prices before budget, so they can show less hikes in budget.