Cut in petrol, diesel prices likely: Naik

Petroleum Minister Ram Naik hinted at a further cut in petrol and diesel prices in view of appreciation in the rupee value. Talking to repor...

Petroleum Minister Ram Naik hinted at a further cut in petrol and diesel prices in view of appreciation in the rupee value. Talking to reporters Naik said “the appreciation in the rupee value has created a scope for further cut in retail selling price of petrol and diesel.” The next price revision is due on May 31.

With the rupee ruling at a two-year peak of Rs 46.90/91 a dollar, imports would be cheaper. This would benefit oil companies as they import 70 per cent of their crude oil requirement. Since April, oil retailing firms have cut petrol and diesel prices by Rs 3 per litre each and the softening of dollar against rupee would further fuel another cut, Naik said.

Declining to give the quantum of price reduction possible due to appreciation in rupee value, Naik said “much would depend on the international crude prices. We will have to wait and watch how prices move during the next week.” Meanwhile, the government on Friday also invited bids for nine coal bed methane (CBM) blocks for exploration and production of gas. The nine blocks offered under the second round of bidding for CBM blocks under the NELP have a combined resource of about 500 billion cubic metres of gas, Naik said. The nine blocks are in Andhra Pradesh (1), Chattisgarh (1) (this block is partially in Madhya Pradesh), Gujarat (1), Jharkhand (2), Madhya Pradesh (1), Maharashtra (1) and Rajasthan (2). Government has already awarded contracts for exploration of CBM in eight blocks in Jharkhand, Madhya Pradesh and West Bengal.

Bids for CBM II would close on October 15 and the promotional roadshops highlighting the investment opportunities available under the round to the prospective investors would be held in New Delhi (May 27) and Houston (June 12-13).