No cut in fuel prices

The Union petroleum minister, Mr Murli Deora has said that the government will consider a cut in fuel prices if international prices fell to $67 per barrel.

Mr Deora said (current) domestic retail prices were pegged at $67 per barrel and a retail price cut would be considered if prices fall below this level.

“We welcome reduction in oil prices but still public sector companies are losing money. Oil companies have to square off their losses for us to consider a price cut,” said the minister.

Mr Deora said that the Indian oil basket has averaged $118.56 per barrel during the fiscal, which is higher than the level at which domestic retail prices are pegged. He said that gains from oil’s decline have been offset by the Rupee’s fall.

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Re hits two year low

The rupee on Wednesday weakened to below 45 against the dollar for the first time since November 2006 as crude oil prices fell in New York, tempering concerns that inflation would accelerate. The Indian currency declined for a second day on fears that equity sales by FIIs and the country's current-account deficit would result in capital outflows.The rupee's slide cam e as the dollar advanced against many currencies, and dollar demand from banks in India increased.

The Indian currency on Wednesday ended at 45.12/13, 0.62% down from the previous close of 44.83/84, against the greenback after data from capital market regulator Sebi showed overseas funds were net sellers of Indian equities on nine out of the past 14 trading days. The rupee dipped as low as 45.20, intra-day.

In global markets, crude oil pared earlier gains, dipping briefly below $100 a barrel on Tuesday, on concerns that slowing economic growth would trim demand. Oil rose briefly earlier after Opec agreed to limit production levels.

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