The government on Friday has cut prices of petrol and diesel by Rs 5 and Rs 2 per litre, respectively, as an interim measure while watching the international prices before effecting more cuts. However, industry experts were expecting a minimum cut of Rs.10/litre on petrol and Rs.5/litre on diesel. Further there has been no cut on LPG and Kerosene, which isnt a good news for the housewives.
The government has decided to cut the prices with effect from 6th December 2008, Petroleum Minister Murli Deora said.
However, there is no change in the prices of LPG (cooking gas) and kerosene.
The government had in June raised the prices of petrol and diesel by Rs 5 and Rs 3 a litre, respectively and that of LPG by Rs 50 a cylinder to protect oil marketing firms against losses on account of a rally in crude prices. Crude oil had subsequently climbed to a record high of USD 147 a barrel in July, but has since come to USD 43.5 a barrel.
Well, ultimately we are left to think “Is it a game plan by the UPA government in order to usher a feel-good factor joined with the fiscal impetus package that is yet to be announced on Saturday”?