Fuel prices not to be cut: Deora

New Delhi, Sept 26 (UNI) Petroleum Minister Murli Deora today reiterated that there will be no cut in prices of petrol and diesel against the backdrop of falling global price of crude.

''It is not appropriate to cut prices now. When crude touches 50 dollars a barrel, we may think about that,'' the Minister said.

The decline has cut the losses of oil companies on sale of petrol, diesel, domestic LPG and kerosene. But this still has not made selling fuel profitable.

''Losses are still there. I wish international prices fall further,'' the Minister said.

The government had, in June, raised petrol and diesel prices by Rs 3 and Rs 2 per litre, respectively, as a fallout of the spike in crude oil prices. The hike, however, was not enough to cover for the rise in cost of raw material (crude oil), and public sector oil companies were asked to bear a substantial part of the loss on fuel sale.

The Indian basket of crude is at 56.28 dollars per barrel - down from a high of 70 dollars per barrel last month.

Oil prices edged lower after recovering yesterday from falls below 60 dollars a barrel, as rising stocks and reduced supply risks offset fears OPEC is considering a production cut.

Prices recovered above 60 dollars by the close, as the market failed to hold below the key psychological barrier on concerns OPEC, producer of more than a third of the world's crude oil, could cut output if oil slumps further.

UNI RT RA GC1604