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Cut in fuel prices after elections

With the international crude price hovering around $50 a barrel, the Centre would consider a cut in fuel prices once the Assembly elections under way in six States were over, Petroleum and Natural Gas Minister Murli Deora said on Tuesday.“The prices of crude have fallen from an all-time high of $147 a barrel to around $50. People have expectations that petrol and diesel prices will be reduced now. “We have to reduce prices and we will consider it only after the Assembly elections are over,” Mr. Deora told journalists at the ‘India-CIS roundtable on hydrocarbons’ here. Declining to comment on the quantum of the cut, Mr. Deora said it would depend on the prevailing prices of crude.Petroleum Secretary R.S. Pandey said the Ministry would send a proposal for price cuts and related subsidy issues to the Cabinet next month. Though the margins on petrol and diesel turned positive, oil marketing companies (OMCs) were still losing money on domestic LPG and kerosene, he pointed out.“Three major OMCs suffered a net loss of over Rs.14,000 crore in the first-half of the current fiscal. As per our calculations, the companies will end the fiscal with a revenue loss on fuel sales of Rs.1.1-lakh crore,” Mr. Sharma said.

November 26, 2008 Posted by | politics | , , , | Leave a comment