Govt to cut fuel prices if global rates come down

The government will cut petrol and diesel prices if international oil rates stabilise at lower levels, Petroleum Minister Murli Deora said today.

"The Parliament is in session and I don't want to say anything outside the House which I haven't said in Parliament," Deora told reporters here.

"I had said in Parliament that we will reduce petrol and diesel prices if international crude oil prices were to stabilise at lower rates. I stand by that statement," he said.

He, however, refused to say what level of crude oil prices would trigger a price cut.

Prices at lower levels will have to stabilise for four to six weeks, a Petroleum Ministry official said.

The government had earlier this month raised petrol and diesel prices citing spike in international crude oil prices to $70 a barrel.

International rates have eased since. The basket of crude oil India buys was at $59.81 a barrel yesterday but the average for July was $63.65 per barrel. The July average was certainly lower than $69.12 a barrel average price of Indian basket of crude for June.

Deora said the price rise was unavoidable as crude had risen to $70 a barrel. "I have said this and I am repeating again that the decision to increase prices was a difficult one. We didn't want to do it but were compelled to," he said.