Date:02/09/2008 URL: http://www.thehindu.com/2008/09/02/stories/2008090260541200.htm

National

Deora: where is the scope for price cut?

Sujay Mehdudia

NEW DELHI: Notwithstanding the decline in international crude prices in recent weeks, Petroleum and Natural Gas Minister Murli Deora on Monday ruled out a cut in retail prices of petrol and diesel.

“Where is the scope for reducing prices?” he shot back to a query by journalists after a review meeting with oil marketing companies (OMCs) here. “Oil companies are still making huge losses.”

Officials said the drop in international prices led to a marginal reduction in daily revenue loss to the OMCs. There was no scope for review under the current circumstances, as prices were raised when crude stood at $68 a barrel. However, the price of kerosene used by the poor was not raised, Mr. Deora said.