Fuel price cut may be delayed...

NEW DELHI: At a time when the government had indicated that there could be a second round of fuel price cut, Saudi Arabia's oil minister Al Naimi has said that oil prices should be moderated by market mechanism.

The government's New Year gift for the aam admi in the form of another fuel price cut could be delayed. OPEC, the world's largest oil cartel, said that it could cut down on production to maintain the price of crude oil at $70 per barrel.

Naimi said OPEC wants oil prices to be moderated by market mechanism, and the organisation wants stability in prices.

OPEC had cut supply by two million barrels per day in September, and an additional 2.2 million barrels per day in December.

A production cut by OPEC will directly impact the government's decision to cut prices of petrol and diesel. The government was expected to cut prices of petrol and diesel by Rs 5 and Rs 2 per litre, respectively, soon. Now, it seems, the government may have to revise the timing and quantum of the cuts.

Source: UtviNews