No cut in petrol, diesel prices: Government

New Delhi, Nov 27: The Government today maintained that there would be no cut in prices of petrol and diesel and are currently not even reviewing the prices.

Petroleum Secretary M S Srinivasan said that ''there is no plans to cut prices of petrol and diesel''.

Earlier, Petroleum Minister Murli Deora said the Government would cut domestic prices if there was a sustained drop in international crude prices.

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

Mr Murli Deora had said earlier in the month that domestic prices of petrol, diesel, LPG and kerosene will not be cut till the global oil prices go down further.

The country will increase its annual refining capacity to 148.97 million tonnes by April 2007 from 138 million tonnes at present, Mr Deora said.

Mr Deora reiterated that there will be no change in prices.

''Global prices have not gone down so much to cut (domestic) prices yet,'' the Minister said after his address at the Economic Editors Conference here.

He said last year, the total under recovery on the four petroleum products was Rs 39,594 crore. The largest component in this was the under recovery in kerosene of Rs 14,384 crore followed by that on diesel of Rs 12,284 crore and in LPG--Rs 10,266 crore.

The expected under-recovery is Rs 73,512 crore with diesel amounting for Rs 37,940 crore and kerosene amounting for Rs 19,403 crore.

''In order to keep a check on inflation, the domestic prices of petroleum products like petrol and diesel have not been raised to the international levels. Eighty-four per cent of the additional burden has been borne by the Government and only marginal burden has been passed on to the consumers,'' Mr Deora said.

For kerosene and LPG, the common man's household fuel, the Govermnment and the oil companies between them are absorbing the burden of the much higher international price.

The PDS kersoene which is being supplied at Rs 9 per litre is perhaps one of the lowest prices in any non-oil producing nation, Mr Deora said.

Mr Deora said the Government is examining each form of fuel separately for any cut in prices, while informing that LPG and kerosene form 66 per cent of the total petroleum products.

Petrol is the only commodity that has shown a slight over-recovery of Rs four per litre. LPG has a under-recovery of Rs 102 per cyclinder and kerosene Rs 14 per litre, Mr Deora said on the sidelines of the signing of Coal Bed Methane (CBM) contracts under the third round of NELP.

Petroleum Secretary M S Srinivasan said the country is still reeling under a huge under-recovery of Rs 27,000 crore.

The Minister had said, "We will be very happy to reduce prices but first we have to examine the impact of the fall in international prices". For any decision to be taken, the price per barrel in the international market has to be less than 52 dollars''.

"We have to see as to what extent the fall has helped us (bridge loss on fuel sales)," he added.

UNI"We will be very happy to reduce prices but first we have to examine the impact of the fall in international prices". For any decision to be taken, the price per barrel in the international market has to be less than 52 dollars''.

"We have to see as to what extent the fall has helped us (bridge loss on fuel sales)," he added.

UNI