Govt likely to cut petrol, diesel prices ahead of LS polls

The authorities is likely scale back the petrol and diesel prices ahead of the Lok Sabha polls as crude oil prices have additionally come down within the worldwide market which can allow the oil advertising and marketing firms to bear the burden.

As per sources, the Ministry for Petroleum and Natural Gas has labored out varied mixtures and permutations on the worth cuts starting from Rs 4 to Rs 10 per litre within the two fuels and the impression it’s going to have on the oil firms.

The authorities can also be discount within the excise obligation on petrol and diesel in order that the complete burden of the worth cut is just not borne by the oil PSUs –Indian Oil, Bharat Petroleum and Hindustan Petroleum.

The ultimate resolution on the worth cut can be taken on the degree of the Prime Minister, sources stated.

The final time the worth of petrol and diesel had been diminished was in May final yr when the Finance Ministry had cut the excise obligation on petrol by Rs 8 per litre and that on diesel by Rs 6 a litre.

Crude oil prices have additionally been falling within the international market. The value of benchmark Brent crude was hovering at round $77 a barrel within the worldwide market on Friday. This is down from the $85 to 90 vary in earlier months which makes it simpler to go for a value cut in gas prices.

Meanwhile, the shares of Indian Oil, Bharat Petroleum and Hindustan Petroleum crashed by 4 per cent in Friday’s commerce amid experiences of a likely cut in petrol and diesel prices.

(With inputs from IANS)