Click to play videoNew Delhi: The Congress-led United Progressive Alliance (UPA) Government is all set to reduce the prices of petrol and domestic LPG cylinders.
Union Minister of Petroleum and Natural Gas Murli Deora has written to Congress President Sonia Gandhi saying petrol prices can be cut by Rs 5 and domestic LPG cylinders by Rs 20. However, there is no proposal to reduce the price of diesel.
Deora's two-page note to Sonia said oil companies would be comfortable with such a price reduction. Deora had on Tuesday made it clear that the government is planning to cut fuel prices after the six state Assembly elections get over on December 24.
"The international prices have fallen and there is an expectation that prices need to be reduced. I am also of the opinion that they should be reduced and that will happen after December 24," Deora had said.
The proposal to cut the prices comes even as oil companies are facing more than Rs 1lakh crore of under recoveries.
The opposition Bharatiya Janata Party (BJP) has termed the step as a clear violation of the poll code and indicated that it will take it up with the Election Commission.
As the BJP had made price rise one of its main election campaign slogan, the Congress and the UPA have been left with little choice but to cut fuel prices.
The Union Government is expecting that a price cut will have a cascading affect on the economy.
Meanwhile, BJP Spokesperson Ravi Shankar Prasad has alleged that the Congress has violated the model code of conduct by announcing a cut in fuel prices.
"The modal code of conduct prohibits any political announcement which could influence the voters. Congress announcing reduction in oil prices after elections during ongoing elections is in violation of the modal code of conduct," Prasad had said on Tuesday.
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