ID :
40481
Tue, 01/13/2009 - 18:07
Auther :

India may slash fuel rates on Thursday; likely to free pricing

New Delhi, Jan 13 (PTI) The Indian government may on
Thursday cut petrol, diesel and domestic LPG prices, besides
freeing fuel pricing from administrative control, a petroleum
ministry official said Tuesday.

The Cabinet, scheduled to meet on Thursday, may reduce
petrol price by Rs 5 a litre, diesel by Rs 3 per litre and
domestic LPG by Rs 25 per cylinder, giving relief to the
common man and further easing inflationary pressures, he said.

State-run oil companies are currently making Rs 9.70 a
litre profit on sale of petrol, Rs 3.70 a litre on diesel, but
are loosing Rs 31.70 per LPG cylinder and Rs 11.69 on every
litre of kerosene.

"There is also a proposal for freeing the retail fuel
prices from administrative control after a mechanism to
compensate for the losses on LPG and kerosene is devised," he
said.

The government will mop up additional revenues by
increasing excise duty on petrol and diesel by a minimum of Rs
one per litre.

For losses on LPG and kerosene, the Cabinet may decide on
issuing a Rs 30,000-crore additional oil bonds this fiscal.

Petrol and diesel prices were cut only in December by Rs
5 a litre and Rs 2 per litre, respectively, as global crude
prices fell to four-year lows.

International oil prices have been hovering at that level
for a while and have prompted the government to think of
another round of price reduction. PTI

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