Cabinet likely to take up fuel price cut issueJanuary 28th, 2009 - 4:26 pm ICT by IANS
New Delhi, Jan 28 (IANS) The cabinet is likely to take up the issue of a fuel price cut Wednesday, just a day after Sonia Gandhi, chairman of the ruling United Progressive Alliance, announced a likely dip at a political rally.The decision also comes with the Election Commission indicating that it plans to complete the general elections by May 18.
The downward price revision has been in the pipeline for some time, with international crude prices continuing to fall even after retail prices of petrol and diesel were cut by Rs.5 and Re.1, respectively, last month.
Petroleum Minister Murli Deora told reporters that the cabinet was going to take up the matter and a decision would be intimated Wednesday evening.
Earlier, Deora had met Pranab Mukherjee, who has been given the finance portfolio, which is handled by Prime Minister Manmohan Singh, currently recuperating after a heart surgery.
It is believed retail prices may be reduced by margins similar to that made in December.
Global fuel prices reached $147 per barrel in mid-2008 before tumbling to as low as $33.
State-run oil marketing companies have been earning profits of about Rs.9 per litre of petrol and Rs.4 on diesel, but still run double-figure losses on kerosene and cooking gas.