Fall In Global Crude Oil...

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[A drop in global crude prices does not offer the government any immediate scope for reduction in domestic fuel prices, although India's crude basket price has fallen over eight per cent in two months. &quot;It (fall in crude prices) is a happy sign. It is a welcome development. But there is no scope for reduction in domestic retail prices,&quot; Petroleum Minister Murli Deora told reporters in New Delhi. Crude oil prices have fallen to below $113 a barrel this week from all-time high of $147 per barrel witnessed last month. The basket of crude oil India buys averaged $109.88 per barrel, down from $119 a barrel price on June 4 when petrol, diesel and domestic cooking gas prices were raised. However, retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum continue to lose money on fuel sales, Deora said. &quot;There still are huge under-recoveries (on fuel sales). I don't see how we can reduce retail prices when our companies continue to lose money.&quot; Fuel prices in India are pegged at $68 per barrel, much lower than the current prices in international market. &quot;Our retail prices are pegged much lower (current international crude prices). There is no scope for reduction in petrol and diesel prices as of now,&quot; he said. The Government had in June raised petrol price by Rs 5 per litre, diesel by Rs 3 a litre and domestic LPG by Rs 50 per cylinder. The fall in international prices would help cut down on the projected revenue loss. At the time of June 5 increase in fuel prices, the revenue loss on sale of petrol, diesel, LPG and kerosene was put at Rs 2,46,600 crore for the full year. However, even after the price increase and cut in customs and excise duties, the revenue loss of Indian Oil, Hindustan Petroleum and Bharat Petroleum is pegged at Rs 2,05,740 crore. Fuel retailers are currently selling petrol at a loss of Rs 11.60 a litre, diesel at Rs 23.23 per litre, kerosene at Rs 39.55 per litre and Rs 348.89 per 14.2-kg LPG cylinder. The under-realisation on fuel sales in 2007-08, when the Indian basket averaged $79.25 per barrel, was over Rs 77,000 crore. IOC, BPCL and HPCL are currently losing Rs 600 crore per day on sale of petrol, diesel, domestic LPG and kerosene. IOC alone is losing Rs 18 crore per day on petrol, Rs 195 crore on diesel, Rs 80 crore on kerosene and Rs 36 crore per day on domestic LPG. Of the projected revenue loss, upstream firms ONGC, OIL and GAIL would chip in Rs 45,000 crore and Rs 20,000 crore would be borne by the retailers. The government would issue oil bonds to IOC, BPCL and HPCL for the remainder of the revenue under-realisation. (PTI)