Business

Indian crude basket drops below $100

NEW DELHI: The continued slide in crude oil prices in the international market has brought cheers to the loss making oil marketing companies (OMCs) with the Indian crude basket dropping below the $100-mark for the first time in the last six months.

Official sources said here that India’s crude oil import price had dropped to below averaged $99 a barrel on Tuesday, the lowest level since April 2. It had averaged $96.52 a barrel on April 1 and crossed the $100-mark on April 7. However, Petroleum and Natural Gas Minister Murli Deora has ruled out any cut in diesel and petrol prices stating that OMCs continued to incur losses on the retail sale of petro products. “Just pray that crude oil prices fall further and then we can think of giving some relief. But the present situation is not desirable for any kind of price cut,” he added.

“The Indian crude basket is lower than the June 4 $119-120-level when hike in prices of petrol, diesel and domestic LPG was announced. But even at current levels, companies are still losing money on sale of petrol, diesel, LPG and kerosene,” the officials said. They argued that a cut in petrol and diesel prices was not advisable at this juncture.

Retailers are at present losing Rs. 6.31 a per litre on petrol, Rs. 13.69 on diesel and Rs. 31.39 on kerosene.

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