New Delhi: Government is monitoring the movement of global crude oil prices and appropriate steps would be taken at the right time on its domestic pricing.

"Petroleum Ministry is watching the (global) petroleum prices and will take an appropriate decision at the appropriate time," Finance Minister P Chidambaram said on the sidelines of a function of Railways in New Delhi today (Dec 16, 2004).

He was replying to a question on whether the Government was thinking of cutting domestic petroleum prices in the wake of slight decline in global crude prices on Wednesday (Dec 15, 2004).

"Where did you get the impression that petroleum prices have come down? It has again gone up today. Don't jump to conclusions," he added.

Crude prices had dipped to $ 43 a barrel yesterday (Dec 15, 2004) and again gone up to $ 44 a barrel today. Petroleum prices were one of the factors that pushed inflation up to over 7 per cent this year.

Inflation, after peaking at 8.33 per cent in August end, came down in September after a series of fiscal and monetary steps and was hovering at 7.3 per cent till November 27.

Excess liquidity due to surge in foreign portfolio investments and Rupee appreciation has also gone up due to tighter liquidity conditions, he said.

Excess funds in the financial sector are largely due to the 43 per cent jump in FII inflows at over $ 9.4 billion so far this year.