New Delhi, May 15: Finance Minister P Chidambaram today ruled out cut in import duty on crude oil, which has been ruling above USD 120 a barrel in the international market resulting in increased losses to state-owned oil marketing companies.

"No. Because mere reduction in import duty on crude oil has no impact on administered prices," he told reporters when asked whether the government was considering cut in duties on the pattern of food articles.

The government has not been able to pass on the burden of spurt in crude oil prices because of the pressure from the Left parties, which have also been demanding that taxes be reduced to make up for the losses of the oil companies.

The government has so far been partly compensating the oil firms like Indian Oil Corporation, HPCL and BPCL by giving them bonds.

Finance Ministry has issued them oil bonds worth Rs 20,333 crore and has agreed to compensate them more to the extent of Rs 15,000 crore for 2007-08.

Meanwhile, a day after the cement companies agreed to cut prices between Rs 3 and Rs 7.5 per bag of 50 kg, Finance Minister today said there is big scope for further reduction in retail prices.

"I do think that there is a scope for significant reduction in cement prices," Chidambaram told reporters here.

When asked whether the government would consider the industry request to cut excise duty, Chidambaram said, "I do not know".

Chidambaram said he has not received any "official" communication on reduction in prices, but "I have read in the newspapers that they have agreed for small cut in cement prices. There is scope for significant reduction." At a meeting with Commerce and Industry Minister Kamal Nath, the cement manufacturers had yesterday agreed for a small roll back in prices.

Nath had said though price increase was only two per cent in the last one year, the industry had agreed for a reduction in prices.