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| Fuels to go cheaper | | | AGENCIES
NEW DELHI, Oct 23: An announcement on the reduction of fuel prices will be made within a week in the wake of decline in global crude prices, Petroleum Minister Murli Deora told the Lok Sabha on Thursday.
"The matter is being examined and an announcement would be made within a week," Deora said during Question Hour in reply to a spate of supplementaries on the issue as opposition members insisted that the fuel prices be brought down forthwith.
BJD member Braj Kishore Tripathy asked "what is the policy of the Government when global crude prices have declined."
Rupchand Pal of the CPI(M) wanted to know whether the government, which has given a "bailout package" to the aviation companies, would "bail out" the common man, hit hard by the rising prices.
Similar was the query from Ram Kirpal Yadav of the RJD, an ally of the ruling Congress.
Deora said the government was waiting for further reduction in global crude prices and would consider the matter later. But as members got agitated and wanted an immediate response he said a decision would be taken within a week.
Deora denied that his Ministry had given any bailout package to the airlines and said it had only allowed them to make deferred payments to oil companies.
"You ask the Civil Aviation department," he shot back to some questions on the "bailout package" to private airliners.
"I have not said that we will next week decide on reducing prices. All I have said is that we will next week review (the situation emerging from OPECs decision)," Deora said.
Energy ministers of 12-member oil cartel Organisation of Petroleum Exporting Countries (OPEC), which accounts for 40 per cent of global crude oil production, are meeting tomorrow to review the present international oil price situation and it is widely expected that they would decide to curtail oil production, which may again lead to a rise in international oil prices.
A Petroleum Ministry official said cutting fuel prices now will widen the revenue loss of state-run firms. "I dont see a trigger, unless political, for a reduction in fuel prices."
"For a price cut to happen, international oil prices have to sustain at levels lower than the break even point, for at least a month. We cannot be seen lowering the prices on one day's fluctuations. Tomorrow, if the prices go up, will the oil companies be allowed to raise prices," he said.
Deora is believed to have met Prime Minister Manmohan Singh on the issue earlier this week and had been advised to wait for international oil prices to fall further before taking the issue to the Cabinet.
Every time the US dollar becomes dearer by one rupee, the revenue loss on fuel sales jumps by Rs 8,500 crore. |
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