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