The price of petrol would be cut by Rs 2 per litre, while diesel would go down by Re 1 per litre, Union Petroleum Minister, Murli Deora, said. The Minister will make a statement in Parliament at on fuel prices at 1600 hrs (IST). The new rates will take effect from Wednesday midnight. Petrol and diesel were slashed following a dip in international crude prices, an issue on which Congress President Sonia Gandhi strongly favoured passing the benefit to consumers. Hours after Sonia Gandhi made her position known at the Congress Parliamentary Party meeting, the Petroleum Minister had met Prime Minister Manmohan Singh and discussed the issue. "I have nothing to say. I will make a statement in Parliament on Wednesday," Deora had told reporters after the meeting, dropping hints that a decision to reduce fuel prices may be announced in the House. Sonia Gandhi, while addressing the Congress Parliamentary Party meeting earlier in the day, had asked the Government to pass on the benefit of lower international crude oil prices to consumers. Sources said while petrol sales were fetching a neat Rs 4.50 a litre profit, diesel continued to contribute to losses. Oil companies were incurring Rs 0.45 a litre loss on diesel. The Indian basket of crude oil stood at about $67 per barrel, when petrol and diesel prices were last raised in June. Crude prices are now hovering in the range of $57-58 a barrel. Deora said, "The Congress President had suggested passing on the benefit of fall in international oil prices to consumers. We just had a meeting on the issue and a decision would be announced in Parliament on Wednesday." Deora refused to speculate on the quantum of reduction, saying since Parliament was in session, he would make an announcement there. Domestic LPG and kerosene prices are being left untouched as oil companies continue to incurr Rs 152 a cylinder and Rs 14.75 a litre loss on the two fuels respectively. Earlier on Tuesday, the Left parties, Samajwadi Party and the opposition BJP had staged a brief walkout in the Lok Sabha demanding immediate reduction in fuel prices
its kinda crazy when the crude price goes to $70-71 the prices are immediately hicked, and it takes more time to reduce prices when crude is at $58 / barrel
Is this last weeks price cut or there is another one ? Looks to me like this is the cut in price which happened on 30th nov.
Strange, how a little change in oil price can have such a big effect on the price of petrol. Or is this change partly subsidized?