Govt not considering cut in fuel prices

Government is not considering a cut in retail prices of petrol and diesel as state-run firms are still incurring revenue losses by sellin g at government-fixed prices, Oil Secretary R S Pandey told reporters on Thursday. "There is nothing under active consideration about slashing prices," Pandey said. "Oil marketing companies are still making under recoveries." The price of the Indian crude basket - the average price of the mix of various crude oil varieties imported into the country - went down to $57.94/barrel last Friday. The benchmark price of Indian basket is the limit set by the government to review retail prices of four sensitive petroleum products - petrol, diesel, kerosene and cooking gas. The breakeven price of $59 a barrel was announced when the rupee was around 49.81 against a dollar. It has since appreciated to around 47.72 a dollar. India operates a complex system of subsidies which has shielded customers from the steep rise in international oil prices. The country imports nearly 75% of its oil requirements. Interestingly, for the first time in four years, public sector oil companies have started making a profit on the retail sale of petrol