Govt To Decide On...

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[India is watching the price of crude oil and will decide in a week if fuel prices should be cut, Oil Minister Murli Deora told parliament on Thursday. Emphasising that state-run oil firms continue to make losses on fuel sales, Deora said the government will watch for the impact of OPECs decision on Friday on global oil rates before deciding on revision petrol, diesel and domestic LPG prices. &quot;We are watching international oil price scenario very closely. OPEC is meeting tomorrow (to decide on cutting its output in view of fall in prices) and we will see what happens (to oil prices),&quot; Deora said. &quot;I have not said that we will next week decide on reducing prices. All I have said is that we will next week review (the situation emerging from OPECs decision).&quot; While international crude oil prices have fallen from the highs of $147 a barrel in July, a sharp depreciation in the value of Indian rupee against the US dollar has wiped away some of the gains. Indian Oil, Bharat Petroleum and Hindustan Petroleum were to break even on sale of petrol, diesel, domestic LPG and kerosene at $67 per barrel crude oil when one USD was equivalent to 41 Indian rupees. However with rupee almost kissing the 50 mark, the break even point has now shifted to $57 per barrel. At Wednesday's level of Rs 49.29 against a US dollar, the break even point is $59. The basket of crude India buys on Wednesday averaged $61.47 per barrel and in second fortnight of October, it has averaged $65.71 a barrel. &quot;In spite of fall in oil prices, which is a welcome development, we are still incurring losses,&quot; Deora said. Oil retailers sell petrol at a loss of Rs 2.41 a litre, diesel at Rs 6.42 per litre, kerosene at Rs 28.07 per litre and domestic LPG at a loss of Rs 344.72 per cylinder. The three firms in April-September lost Rs 92,853 crore on fuel sales (audited figures) and are projected to lose Rs 147,486 crore in the full fiscal. Several politicians said in Parliament the government should cut fuel prices to help the common man, just as it had helped defaulting airlines by giving them six months to pay jet fuel dues in instalments. Deora is believed to have met Prime Minister Manmohan Singh on the issue earlier this week and had been advised to wait for international oil prices to fall further before taking the issue to the Cabinet. Every time the US dollar becomes dearer by one rupee, the revenue loss on fuel sales jumps by Rs 8,500 crore. (Agencies)