India's crude oil import price has dropped to the year's lowest but a cut in petrol and diesel price may happen only if crude falls to USD 61 per barrel as rupee depreciation has partly offset the gains.

Oil firms were supposed to break-even on sale of petrol, diesel, LPG and kerosene if the price of the basket of crude India buys were to come down to USD 67 per barrel. However, with 20 per cent depreciation in value of rupee against the US dollar, the break-even point is now at USD 61 a barrel.

"The benefit of softening of the international oil prices has been partly offset by the recent depreciation of the rupee," a Petroleum Ministry official said.

Indian Oil, Hindustan Petroleum and Bharat Petroleum are losing about Rs 350 crore per day on fuel sales.

"The domestic retail prices at the time of revision in prices in June were equivalent to Indian basket of crude oil of USD 66 per barrel. With the recent depreciation of rupee against US dollar, the current retail prices now correspond to USD 61 per barrel of Indian basket of crude oil," he said.

The Indian basket of crude oil on Monday fell to USD 72.20 per barrel, the lowest level this year. It has averaged USD 79.70 a barrel in October.

The three firms are losing Rs 4.68 per litre on sales of petrol, Rs 11.48 on diesel, Rs 28.07 on kerosene and Rs 322.14 per LPG cylinder and are projected to lose Rs 1,62,158 crore on fuel sales this fiscal.

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