Petrol, diesel prices cut expected after assembly polls

New Delhi, Nov 25 (PTI) The Indian government is likely to cut petrol price by Rs 5 a litre and diesel by Rs 3 per litre after assembly elections in six states are completed on December 24.

"Crude has fallen from all-time high of USD 147 per
barrel to around USD 50 now. Naturally, there are expectations
that petrol and diesel prices should be reduced and we will do
that," India's Petroleum Minister Murli Deora told reporters
here.

Government had in June raised petrol price by Rs 5 a
litre, diesel by Rs 3 per litre and domestic LPG by Rs 50 per
cylinder as crude oil prices had climbed to record highs. The
hike is now expected to be rolled back.

"We have to reduce prices but it will happen after
assembly elections," he said.

As a result of fall in the international oil prices,
state-run Indian Oil, Bharat Petroleum and Hindustan Petroleum
started making profit on sale of petrol from November 1 and on
diesel from November 15.

Petroleum Secretary RS Pandey said though margins on
petrol and diesel had turned positive, the companies were
still losing money on domestic LPG and kerosene.

The three firms lose Rs 22.40 a litre on kerosene and Rs
343.49 per LPG cylinder, which together work out to Rs 80
crore per day.

Pandey said the Cabinet Committee on Economic Affairs
(CCEA) would be informed of the factual position and
directions sought.

The three companies suffered a net loss of over Rs 140
billion crore in the first-half of the current fiscal and ways
and means of making it up were to be worked on, he said.

"As per our calculations, the oil companies will end the
fiscal with a revenue loss on fuel sales of Rs 1100 billion.
How to make up for this will also have to be decided by the
CCEA," he added. PTI KV
SAK