| Tuesday, December 26, 2006 |
| Fuel prices reduced in India |
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Good news for the ones on the road! Pressure from the Left allies has forced the United Progressive Alliance government at the Centre to cut retail prices of petrol and diesel by 4.25 per cent and 3 per cent respectively.
The cut, attributed to lower prices of crude, is likely to hit oil companies who are still reeling under the losses sustained due to the earlier global crude price gains.
Announcing the price cuts, Union Oil Minister Murli Deora said that the government, keeping the totality of circumstances in mind, has decided to reduce the retail price of petrol by 2 per litre and diesel by 1 per litre from midnight on Wednesday. It may be recalled that the government had effected a price rise in June to reduce losses at state-run fuel retailers after global crude prices soared.
With the fall in oil prices, the UPA government had been under attck from the Left party allies to push down fuel rates. Congress president Sonia Gandhi had also given the nod to roll back the prices increased in June.
The country imports 70 per cent of its oil and the June rise helped push wholesale price inflation above 5 percent annually, prompting the central bank to raise interest rates.Labels: Auto Industry |
| posted by a correspondent @ 2:36 AM |
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