Expect no cut in fuel prices
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14/10/2008
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Asian Age (New Delhi)
BY MUKESH RANJAN
NEW DELHI
Making it clear that the time is still not ripe for downward revision of the retail prices of transportation fuel and cooking gas, the Planning Commission has communicated to Prime Minister Manmohan Singh that despite the sharp fall in the global crude oil prices, it is still higher by about $20 per barrel to reach the break even point.
Sources in the government revealed that Planning Commission deputy chairman Montek Singh Ahluwalia, in his note to the Prime Minister, suggested that unless the global crude oil prices touch the $60 per barrel mark, there is no scope for the government to lower retail prices transportation fuels or cooking gas. At present, the Indian basket of crude prices has been hovering around $80 per barrel.
As part of back-up reasoning to his suggestions, Dr Ahluwalia, it is reliably learnt, has argued that at the time of upward revision of the retail prices of petroleum products in June the global crude was hovering around $119-120 per barrel and prices fixed in tune with a global price band of $66 per barrel.