The Hindu Business Line : Govt to review retail fuel prices this month end

Speaking to presspersons, he said the Government might reduce petrol and diesel prices if the current fall in international oil prices continues and crude (Indian basket) declines below $50-a-barrel level.

"The fall in international crude prices is of much relief to us. We are closely monitoring the emerging scenario," he said adding, "There may be a scope for a cut in petrol and diesel prices if the Indian basket falls below $50 per barrel."

The Indian crude basket on January 8 stood at $53.48 a barrel up from $52.87 a barrel on January 5. The January till date average stood at $ 54.72 per barrel. The Petroleum Minister, Mr Murli Deora, has been maintaining that the Government will cut prices of the two oil products if the Indian basket of crude stabilises below $50 a barrel and maintains at that level.

"The prices have not yet stabilised, but when they do, there will be a case to consider a price cut," Mr Deora said.

The composition of Indian basket is based on total industry processing of sweet and sour crude oil and represents f.o.b. prices of average Oman/Dubai crude for sour and Brent (dated) for sweet grade in the ratio of 59.8:40.2. Brent on Tuesday traded at around $ 53.83 a barrel.

Addressing an international workshop on `Non-conventional fossil fuel resources' here, Mr Srinivasan said that India would aggressively pursue bidding for oil and gas exploration and production assets overseas to augment local supplies of hydrocarbons. "One of the most important resources which is of immediate commercial interest to us is CBM. We have vast reserves in the country, and consequently these can be exploited to meet the ever-increasing demand for natural gas. So far, 26 blocks have been awarded for exploration and production of CBM and some blocks are being delineated for offer under future rounds," he said. Separately, at the event the Director-General of Hydrocarbons (DGH), Mr V.K. Sibal said that ONGC has informed the DGH about the discovery in the Krishna-Godavari basin and the Mahanadi Basin.