<p>"If the prices globally come down sharply and in a stable way, naturally the prices of petrol would be adjusted downwards," Reddy told reporters.<br /><br />Petrol prices have been de-regulated and now oil marketing companies price the fuel on the retail level according to global movement of crude. This has led to sharp increases in the petrol prices.<br /><br />Other fuels like diesel, kerosene and cooking gas are still under government control. The petroleum ministry had hiked prices of fuel in June as global crude oil prices shot up.<br /><br />Following Standard and Poor's downgrade of US's sovereign debt rating and fears of the US seeing a double-dip recession, oil prices have witnessed a sharp decline.<br /><br />Crude was trading around the $80 a barrel mark at the Multi-Commodity Exchange Tuesday afternoon.<br /><br />A dip in prices of fuel will also have a sobering effect on high inflation, which has been troubling policymaker for over two years.<br /></p>
<p>"If the prices globally come down sharply and in a stable way, naturally the prices of petrol would be adjusted downwards," Reddy told reporters.<br /><br />Petrol prices have been de-regulated and now oil marketing companies price the fuel on the retail level according to global movement of crude. This has led to sharp increases in the petrol prices.<br /><br />Other fuels like diesel, kerosene and cooking gas are still under government control. The petroleum ministry had hiked prices of fuel in June as global crude oil prices shot up.<br /><br />Following Standard and Poor's downgrade of US's sovereign debt rating and fears of the US seeing a double-dip recession, oil prices have witnessed a sharp decline.<br /><br />Crude was trading around the $80 a barrel mark at the Multi-Commodity Exchange Tuesday afternoon.<br /><br />A dip in prices of fuel will also have a sobering effect on high inflation, which has been troubling policymaker for over two years.<br /></p>