ID :
34148
Fri, 12/05/2008 - 20:03
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http://m.oananews.org//node/34148
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Fuel prices may be cut Saturday; crude may attract import duty
New Delhi, Dec 5 (PTI) The Indian government may cut retail fuel prices Saturday, a move that would help rein in inflation and allow Reserve Bank of India (RBI) to go for deeper policy rate cuts to push economic growth.
Official sources said besides the announcing the cut in petrol, diesel and LPG, a stimulus package to be announced by the government Saturday may include re-imposition of customs duty on crude oil.
The government had abolished the five percent customs duty on crude, when its price touched a record USD 147 a barrel in July this year. With crude falling below USD 50 a barrel now, the Finance Ministry is looking at reimposing the levy.
International crude prices are ruling at four-year lows of near USD 45 a barrel. High crude prices earlier this year had prompted the government to increase petrol and diesel prices by Rs 5 and Rs 3 per litre respectively and that of LPG by Rs 50 a cylinder.
This had in turn fuelled inflation to double digits. Inflation has since cooled to 8.40 percent for the week ended November 22. A cut in fuel prices may bring it down to a tolerable level and give room to RBI to increase money supply to keep the economy ticking despite the global slowdown.
The Petroleum Ministry has prepared a note for
consideration of the Cabinet Committee on Economic Affairs and
is pressing for an early meeting, sources said. PTI
Official sources said besides the announcing the cut in petrol, diesel and LPG, a stimulus package to be announced by the government Saturday may include re-imposition of customs duty on crude oil.
The government had abolished the five percent customs duty on crude, when its price touched a record USD 147 a barrel in July this year. With crude falling below USD 50 a barrel now, the Finance Ministry is looking at reimposing the levy.
International crude prices are ruling at four-year lows of near USD 45 a barrel. High crude prices earlier this year had prompted the government to increase petrol and diesel prices by Rs 5 and Rs 3 per litre respectively and that of LPG by Rs 50 a cylinder.
This had in turn fuelled inflation to double digits. Inflation has since cooled to 8.40 percent for the week ended November 22. A cut in fuel prices may bring it down to a tolerable level and give room to RBI to increase money supply to keep the economy ticking despite the global slowdown.
The Petroleum Ministry has prepared a note for
consideration of the Cabinet Committee on Economic Affairs and
is pressing for an early meeting, sources said. PTI
