New Delhi, Aug 13: Despite fall in the prices of crude oil to below 113 US dollars a barrel this week, Petroleum Minister Murli Deora today ruled out possibility of reducing the prices of fuel.

Deora told reporters here that the softening of crude oil prices was a welcome development, but there was no scope of decrease in domestic fuel prices.

The Minister pointed out that oil marketting companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum continue to lose money on fuel sales and there were still huge under-recoveries on fuel sales.

He said: “I will 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.”

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

Deora further added that fuel prices in India are pegged at 68 dollars per barrel, much lower than the current prices in international market.

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