Indian Government to review petrol prices at the end of the month

The Indian government is likely to review petrol and diesel prices on January 31. Sources say that a price cut could take place if the international crude prices fall further.

India’s petroleum secretary M S Srinivasan said in a statement: “There will be a review on January 31. If the current average continues there will be no cut. For a reduction to happen prices have to fall further.”

This month has seen international crude prices falling down to their lowest in 19 months and the government is facing pressure from coalition partners to review the prices of petrol and diesel in India.

The government said that if the prices of crude oil falls below $50 a barrel on a sustained basis, they could go ahead with a price cut.

However, the state run oil companies are still incurring a loss of Rs 0.22 per liter on petrol and Rs 1.42 a liter on diesel. They are losing much more on sale of Kerosene and Kitchen Gas at subsidized rates.