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On Tuesday, UPA chairperson Sonia Gandhi told a rally that she hoped that petrol prices would be reduced soon. "The prices of petroleum products have decreased recently and I expect that soon they will dip further."
Sources said that though the proposal to the Cabinet Committee on Economic Affairs -- which meets on Wednesday evening -- provides the option of taking auto fuel pricing out of government realm, it was likely to be left for the next government that would be in place in June after general elections.
The second option, which has the political consent, for the CCEA is to bring down petrol prices by Rs 5, diesel by Rs 2 and LPG by Rs 25, they said. Deora, however, maintained that a decision on the exact reductions would be decided at the CCEA.
The pricing issue is usually decided by a smaller Cabinet Committee on Political Affairs but that was not slated for Wednesday, said sources.
The CCEA would also approve that as an interim measure, the Finance Ministry would provide Rs 44,967 crores worth of oil bonds as the government's share of under-recoveries, upstream companies would yield Rs 25,929 crores as discounts on crude oil and LPG to oil marketing companies, and the OMCs absorb Rs 21, 957 crores in their balance sheet.
The state-run OMCs suffered Rs 92,853 crores as under-recoveries in the first half of this fiscal year as government held on to prices despite a sharp surge in global crude oil prices.
Crude oil had climbed to a record high of $147 a barrel in July, but has since come down to $40 a barrel prompting the government to cut petrol prices on December 5 by Rs 5 and diesel by Rs 2 a litre.
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The Government is trying to fool the public by reducing the oil prices and wants to gain political mileage in the upcoming elections. If it really wanted to reduce the fuel prices, then it could be done much sooner. I am sure that the fuel prices will shoot up after elections.
Its really nice to have reduction in petrol prices. It will reduce some load on the daily expenses of middle class people,
Finally the living Godess of Congress (Sonia) felt the pain of the public and ordered to reduce Rs. 5/ltr.for petrol, Rs. 2/ltr. for diesel and Rs. 25/lpg cyl. and saved them from suicide as she felt herself. She is the No. 1 crook who is fooling us and doing everything against us from behind curtain. She is the one who brought our President (who has never functioned even as a Panchayat President in her life) only know to affix a rubber stamp and sign whereever sonia asked. She is the one who brought our PM (Spineless Sardarji) an insult to pride sikh community, the most weakest PM independent India ever had in its history. Now she is gradually projecting her son
It is high time we start going into market governed prices for fuel. The next government should come up with a 10 year window where the subsidy is reduced/taxes are rationalized year over year.
Reaching the Hearts
anybody know the cost of 1 ltr petrol in pakistan it is Re 27/- per ltr. A shattered economy like pakistan can manage why cant the indian oil sector manage the prices at the same level?
SHOULD BE Rs. 30./ litre
The government of India ofcourse imposes Customs Duty and other applicable taxes on Petroleom products including Petrol
I thought they will only talk and not reduce the prices of petrol and diesel (unlike ATF where they do not talk but reduced prices N no. of times) for the reasons known best to them. are not there any watchdogs who will question Govt. for not reducing Petrol
This Is Very Good News.
It was long time awaited and people will again keep on waiting.
The Object of Congress is to gain Votes in the Parlimentary Elections. People should understand this tactice and vote for a party which is really showing humaniterian face.
If Congress was subsidizing petrol and selling it for 2 Rs /lit then it would be considered as move for political gain. Not now. Remember BJP promised rice for 2 RS / kg in Chattisgarh, and that is a tactice for political milage and vote for a party. Congress is doing fine here. I dont see any hidden agenda.
Balu, do you mean to say that we should prevent the govt not to reduce the prices
The government's decision to bring down the oil prices is a welcome one but the reduction of diesel price just one rupee as reported by T.V channels is disappointing. When the crude oil price has come down to more than 107 $ per barrel ,the Govt telling the people that the companies have a loss of more 92 thousand crores is unbelievable . The Govt is not telling how much the companies made as the prices were coming down. It is also important to say that the loss is due to the high custom duty which is the earning by the Govt and so naturally he govt should make up for it and reduce the oil prices which will also bring down the cost of living as the prices of other things will go down due to less cost of transporting.
hi it ssems it a good news
price of crude has come down since last few months but govt. is raking in mullah from the fixed price of petrol and diesel in the retail indian market. for rich, aviation fuel prices r decreased by more than 50% but the poor aam aadmi is not given that priveledge. prices of petrol must be decreased by rs. 15/ and diesel by rs.10/ immediatrely. govt. is getting all kinds tax revenues and profits from the high prices prevailing in india. why should aam aadmi face the hardships? in the last parliament deora,the minister had said tht prices will be reduced in next 10 days. politicians seems to have no promises to keep.
This should have come a fortnight ago, but Congress wanted to derive political mileage. I bet another will come just before Elections are announced.
Government is not doing any favour!! The international prices have dropped and only a part is being passed on to the public. This should have been done in December 2008
This was a piece of information anyways, it does not need your approval. Why dont you just stop taking this favour and pay the current rate.
Thanks to coming elections which is making the government to wake up.