No scope for decreasing fuel prices: Deora

Even as global crude oil prices have fallen to their lowest in three months Petroleum Minister Murli Deora today said there was "no scope for decrease in domestic fuel prices."

"The softening of crude oil prices is a welcome development. But there is no scope of decrease in domestic fuel prices," he told reporters in Delhi today.

Prices of crude oil have fallen by over 23.5 per cent over the last four week from the record high of $147 per barrel as economic slowdown in the US, the world's largest consumer of oil, is expected to reduce demand.

China, the second largest importer of oil, has also reported lower oil imports in June compared with a year ago.

The price basket of crude oil that India refineries buy has also fell dipped by over 20 per cent from the record highs recorded on July 4 to levels last seen in May.

Prices however, are still around 50 per cent higher than a year ago.

Deora also said that he would meet the chairmen of the country's oil companies on August 19 to discuss the recommendations of BK Chaturvedi Committee which was set up by the Prime Minister to look into the financial position of the oil companies.

"I am told there are some recommendations which can be implemented," Deora said.

The Chaturvedi committee has recommended that prices of petrol, diesel and cooking gas be determined by the market.

It has also said that refineries sell petroleum products at an export parity price rather than the current trade parity price.

Officials in the petroleum ministry say the export parity pricing recommendations is likely to be accepted, but not the freeing of prices of petroleum products.