Govt to wait before announcing price cut in petrol, diesel: Deora

New Delhi, Jan 19 (UNI) The Government today said it would wait for stabilisation of crude price in the international markets before announcing any cuts in the domestic petrol and diesel prices.

''Before announcing price cuts in domestic petrol and diesel prices, we will see prices to stabilise below 50 dollars a barrel at least for a month,'' Petroleum Minister Murli Deora told reporters on the sidelines of the global oil and gas conference, Petrotech 2007 here.

Earlier Petroleum Secretary M S Srinivasan had said the Government would review prices by the end of this month.

Mr Deora said he would meet Finance Minister P Chidambaram next week to discuss budget proposals for the petroleum sector to seek a cut in excise duties on petroleum products.

Mr Deora had earlier said the Government would review crude prices if it goes down below 50 dollars per barrel in the international markets.

However, he admitted that due to limited storage facilities in the country, buffer stocks of petroleum products could not be increased immediately to take the benefit of the current lower international crude prices.

He added that the Government had plans to increase buffer stocks of around one million tonnes of crude oil but it would take some time.

International crude oil prices are ruling at around 52 dollars a barrel compared to a high of 70-75 dollars in July-August last year.

UNI