Click to play videoNew Delhi: India has no plans at the moment to cut prices of widely consumed fuels despite sharp falls in the price of crude oil, the Oil Secretary said on Tuesday.
"Crude prices have fallen but not to the level that warrants downward revision in (fuel) prices," R.S. Pandey told reporters.
Oil rose by $3 a barrel after a large interest rate cut in Australia raised hopes that other policymakers would follow suit to bolster economic growth, a move that would support oil demand.
But rates are still way below the record high of $147 a barrel hit in July.
Crude oil prices have sharply fallen below $89 a barrel for the first time since February. This is a direct result of the global financial crisis, which has fuelled fears of slowing demand for oil.
Light sweet crude on the New York Mercantile Exchange fell by US $6 to settle at US $87 a barrel. This fall comes just three months after prices touched US $147 a barrel.
Analysts believe that the OPEC might even consider to cutback on oil-production to keep prices from falling further.
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