The Union Government is unlikely to reduce prices of petroleum products as of now despite huge fall in the prices of crude oil in the international market. Crude prices were $142.04 a barrel on July 3 while currently they are fluctuating in between $47 -$50 per barrel. The public sector oil marketing companies have requested government to hold prices so that they can cover their previous losses. The Indian crude oil basket has averaged $52.78 a barrel in November as compared to October's average of $69.12.

Government is expected to cut prices near the forthcoming general elections to take poll advantage besides helping oil marketing companies. The Petroleum Ministry and Petroleum and Natural Gas Minister, Muril Deora is also under pressure from oil marketing companies on the matter of price revision.

Petroleum Secretary R. S. Pandey on Thursday ruled out fresh cut in prices of petrol and diesel and said that government is trying to cover loses that were suffered by companies in terms of subsidy offered on the sale of domestic LPG and PDS kerosene.

Oil marketing companies are making profit of Re 0.70 a litre on diesel sales and Rs 9.86 a litre on petrol while suffering a loss of Rs 22.40 a litre on kerosene and Rs 343.49 a cylinder on LPG. Thus, price reduction is not possible at the moment as per Mr. Pande.