Date:15/05/2003 URL: http://www.thehindu.com/2003/05/15/stories/2003051503611100.htm

National

Further cut in petrol, diesel prices likely

MANGALORE MAY 14. The Petroleum Minister, Ram Naik, today hinted at further cut in the prices of petrol and diesel at the fortnightly review tomorrow, in tune with the global softening of crude prices.

"Tomorrow is the price review and I feel there is scope for further cut in petrol and diesel prices," Mr. Naik told reporters here.

This would be the third time in two months the State-owned oil firms would be cutting prices. Last month, the oil companies cut the prices twice by Re. one each.

The International crude prices were on a decline since the war in Iraq started.

The Indian basket of crude, which had averaged $28.80 a barrel in March, slumped to $24.21 a barrel in April.

Mr. Naik, however, did not say anything about the quantum of reduction prices.

"It will be decided by the oil companies".

The average procurement cost of the Indian basket of crude was $24.33 in the second fortnight of April which further slipped to $23.63 in the first half of this month, necessitating the price cut. — PTI