Tech & Biz

India Cuts Prices of Petrol and Diesel - LPG prices unchanged - Effective December 5 midnight

by Ravi Dixit | December 5, 2008 at 04:37 am

4630 views | 48 Recommendations | 6 comments

Prices of Petrol down INR 5 and Diesel down INR 2

Finally waiting for months on end and with more than 60% drop in global oil prices the Indian Government has cut the prices of petroleum products in a bid to grant relief to the citizens of the country. The prices of petroleum products were revised upwards on June 4, 2008 when the global proces were ruling at US$ 135. THe government was holding the price cut for a long time even when the global crude prices had hit a 4 year low yesterday and was hovering at about US$44.

The cut was announced by Petroleum Minister Murli Deora. As per the news reports the prices of Petrol is down by INR 5 and Diesel is down by INR 2 per liter. The cut will come into effect from midnight today December 5, 2008. In June 08 the prices were increased by INR 5 for Petrol and INR 3 for Diesel. The prices of LPG have been left untouched. (1 US$ = INR 49).

It will be interesting to know the prices of Petrol across the globe, so please post the prices here so that we can do a comparison as to how each of us are paying for the same commodity.

Petrol Prices in Delhi will be INR 45 per liter down from 50 and will be sold at INR 50 in Mumbai from tomorrow. Diesel will cost INR 33 in Delhi and INR 35 in Mumbai as per news on Star News and other channels.

On June 4, when global crude prices were hovering around USD 135 a barrel, the government announced an increase in prices of petrol and diesel by Rs 5 and Rs 3 per litre respectively to bail out state-run oil marketing companies from a financial mess.

NEW DELHI: The government has decided to slash prices of petrol, diesel by Rs 5 and Rs 2 a litre with effect from midnight Friday, the first in over two years.

The price cut will come as a relief to fuel consumers, rein in inflationary pressures and boost demand in the economy.

Fuel consumers who have seen increases in their fuel bills over the past two years, and an increase in their home budgets because of rising prices of fruits, vegetables, food articles and travel.

The price cut will also help rein in inflationary pressure as most of the transportation trucks and railways use diesel as a fuel.

A cut in diesel prices is expected to soften prices of fruits , vegetables, food grain and industrial products.

Inflation in food products has been steadily increasing and was at a nineteen month high of 10.43% according to the latest government data.

The idea is to put more money in the hands of people and is also aimed at boosting the economy. It is also viewed as one of the measures by the Indian government to boost the sentiment in the country and bring down inflation. A lower inflation is key to boost demend.

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Rachel Nixon

at 08:28 on December 5th, 2008

Great post, Ravi.

Ravi Dixit

at 08:59 on December 5th, 2008

Thanks Rachel

Amitjha

at 21:23 on December 5th, 2008

Thats good news for millions of consumers, who are facing hardship in inflationary situation. Hope the the reduced prices will show its impact on other commodities soon.

azzayindia

at 22:17 on December 5th, 2008

the govt has done no favours the price of crude is have decreased a lot and more price cut should have been given and that to earlier.the govt has played in the hands of ythe oil barrons of the country.It is also diversion from the ral issue at the moment security.

PVRao (not verified)

at 21:02 on February 4th, 2009

The Govenment of India should seriously think of rationing subsidiced cylinders by giving one 14.2 k.g. cylinder per family taking the percapita consumption formulae and reduce the price variation between commercial and domestic cylinders in order to avoid pilferage or misuse.

khooper (not verified)

at 21:17 on February 11th, 2009

When the price of crude oil decrease, petrol station takes a long time to reduce price, but when price of crude increases, petrol station immediately increase price,what is CASE doing ? Cars are every where and almost all needs it. But not only prices of the gas are being monitored now but also different car parts like bumpers, tire, window regulator and others.