Fuel price cut under consideration again
Kochi December 30:
In first clear indications of a further reduction in petrol and diesel prices, Petroleum Minister Murli Deora said the Government was considering passing on the benefit of the fall in international crude oil prices to consumers.
The Government had earlier this month reduced the price of petrol by Rs 5 a litre and diesel by Rs 2 per litre, and with crude oil sliding below USD 40 a barrel, there was further scope for cutting the petrol price by up to Rs 11 a litre and diesel by Rs 3 per litre. "We are considering reducing prices of oil products," he said addressing Congress party leaders here.
Deora, however, refused to set himself a timeframe but stated that "measures" were in the offing. "Now that (international) prices have stabilised to a large extent, there is scope for reducing prices. We are actively considering that," he said. The cut in petrol and diesel prices may be moderated by the fact that public sector oil firms continue to lose Rs 17.26 a litre on kerosene and Rs 148.38 per domestic LPG cylinder.
"We intend to protect consumers (of these products)," he said. Deora said public sector oil companies continue to incur huge under-recoveries (revenue losses) on sales of kerosene through PDS, and domestic LPG. The three fuel retailers lose Rs 33 crore per day on the sale of kerosene and Rs 15 crore a day on LPG sales.