Panipat, Jan. 12: Petroleum secretary M.S. Srinivasan today said the government would be reviewing prices of petrol and diesel on January 31.

Srinivasan said India’s crude oil basket is currently averaging around $51 a barrel and if prices continue to fall, the government would reduce the prices of auto fuels.

Srinivasan feels that if the price of Indian crude oil stabilises below the $50-per-barrel level, the government can go in for a price reduction.

However, with Assembly elections in Uttar Pradesh and Punjab round the corner, the government could bring into effect a price cut even if crude oil does not dip below the $50-mark. Indian Oil chairman Sarthak Behuria said following the fall in crude oil prices, the company expects to make a profit on sale of petrol and diesel from January 16.

Behuria said despite a recent fall in global crude prices, his company is currently suffering a loss of Rs 40 crore per day on sale of oil products. “We are losing 23 paise per litre on sale of petrol, Rs 15 per litre on kerosene, Rs 1.4 per litre on diesel and Rs 150 per cylinder on cooking gas,” he added.