Govt in no mood to cut retail fuel prices

The government has not taken any decision to reduce retail fuel prices despite a steep decline in global crude prices, according to petroleum minister Murli Deora on Monday. He added that the cooling of crude prices in the international market was not sufficient enough to warrant a price cut in the domestic market.

Crude prices have plunged from a record high of $147.27 in July to nearly $117 per barrel last week. Industry analysts also echo Deora’s view that the decrease in crude prices was not large enough to justify reducing retail fuel prices.

The government had hiked retail prices of petrol and diesel by about 10% in June to partly offset losses of state oil marketing companies, which are forced to sell below market prices to help the government control inflation.