Government rules out fuel price cut

Calcutta News.Net
Monday 1st September, 2008

The central government Monday ruled out any decrease in fuel prices, even as oil companies slashed rates of aviation turbine fuel (ATF) the night before.

Indian oil marketing companies Sunday brought down ATF prices by 16 percent due to international crude prices going down. From a high of $145-plus in mid-July, crude prices had gone down to as low as $113 in August.

Brent crude rose to $115.09 Monday - an increase of over a dollar from Friday closing.

Petroleum minister Murli Deora ruled out any cuts, adding that crude prices have to remain low for the government to consider any reduction.

The government had earlier increased fuel prices by 10 percent in July. The current retail price is pegged at about $68 a barrel.

Officials said ATF prices have been pegged at market rates in contrast to domestic fuel prices.

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