On Jan 28, the government announced further cutback in petrol and diesel prices by Rs 5 and Re 2 a litre, respectively. In second round of cuts in as many months, the domestic LPG rate was also brought down by Rs 25 per cylinder.
The reduction came into effect from midnight Wednesday and will help further relieve in inflationary pressures. Petrol in Delhi will cost Rs 40.62 a litre instead of the present Rs 45.62 per litre from Wednesday midnight, while diesel will be sold at Rs 30.86 per litre as against current Rs 32.86 a litre. Similarly, a 14.2-kg domestic LPG cylinder will now cost Rs 279.70 in place of Rs 304.70.
The Cabinet Committee on Political Affairs headed by External Affairs Minister Pranab Mukherjee has decided to reduce petrol, diesel and LPG prices to pass on the benefit of diminishing international oil prices to consumers, Petroleum Minister Murli Deora said. While state-run oil firms were making a neat Rs 9.86 a litre profit on petrol before this price reduction and Rs 3.48 on every litre of diesel, they were still losing Rs 32.97 per LPG cylinder and Rs 12.16 per litre of kerosene. The reduction could have been sharper but for the losses on LPG and kerosene. Petroleum Secretary R S Pandey said no decision on raising excise and customs duty to wipe any extra revenue has been taken. Also, the parallel proposal of freeing petrol and diesel prices from administrative control has not been worked ahead.
The reduction came into effect from midnight Wednesday and will help further relieve in inflationary pressures. Petrol in Delhi will cost Rs 40.62 a litre instead of the present Rs 45.62 per litre from Wednesday midnight, while diesel will be sold at Rs 30.86 per litre as against current Rs 32.86 a litre. Similarly, a 14.2-kg domestic LPG cylinder will now cost Rs 279.70 in place of Rs 304.70.
The Cabinet Committee on Political Affairs headed by External Affairs Minister Pranab Mukherjee has decided to reduce petrol, diesel and LPG prices to pass on the benefit of diminishing international oil prices to consumers, Petroleum Minister Murli Deora said. While state-run oil firms were making a neat Rs 9.86 a litre profit on petrol before this price reduction and Rs 3.48 on every litre of diesel, they were still losing Rs 32.97 per LPG cylinder and Rs 12.16 per litre of kerosene. The reduction could have been sharper but for the losses on LPG and kerosene. Petroleum Secretary R S Pandey said no decision on raising excise and customs duty to wipe any extra revenue has been taken. Also, the parallel proposal of freeing petrol and diesel prices from administrative control has not been worked ahead.
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