Government takes no decision on diesel price cut

February 26th, 2009 - 6:45 pm ICT by IANS  

New Delhi, Feb 26 (IANS) Despite speculation that the government may reduce the price of diesel before general elections are announced, the union cabinet of ministers did not discuss the issue when it met here Thursday, Petroleum Minister Murli Deora said after the meeting.
Though diesel is the only petroleum product on which state-run oil marketing companies are earning a good profit, there had been speculation that the government would take the populist measure before the poll date announcement kicked the model code of conduct into place and made such an announcement impossible.

But “unfortunately, it (diesel price reduction) was not on the agenda,” Deora told reporters.

He also refused to say if a meeting of the relevant cabinet committee would take up the matter later.

Petroleum Secretary R.S. Pandey too said there was no indication of any meeting by the Cabinet Committee of Political Affairs to take a decision on the issue.

“I am not aware of any move to reduce prices yet. There is no proposal yet before me,” he said.

The three state-run petroleum distribution firms earned a profit of Rs.3.6 per litre of diesel, totalling a profit of about Rs.350 million a day.

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