Wednesday, February 25, 2009

Govt mulling diesel price cut

NEW DELHI: As crude oil prices hover around four-year lows, the government may look at slashing diesel prices further that will help cool inflation by lowering goods transportation charges.

When contacted, Petroleum Minister Murli Deora said: "There is no plan as of now to cut fuel prices." But, sources in the know said the Oil Ministry was pushing for the matter to be taken up by the Cabinet at the earliest.

According to a source, "There is a scope for reduction in diesel rates only." Going by the calculations, diesel prices can be cut by Rs 2 a litre on top of the Rs 4 a litre reduction effected in two installments since December.

State-owned fuel retailers Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum are selling petrol at almost break-even point while they make Rs 3.26 a litre profit on diesel sales.

New York's main contract, light sweet crude for April delivery, was trading at $40.07 a barrel as demand was still weak.

Soruce:http://timesofindia.indiatimes.com/Business/Govt-orders-special-audit-of-DLF/articleshow/4189734.cms

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