Click to play videoNew Delhi: Union Minister of Petroleum and Natural Gas Murli Deora says petrol and diesel prices will be cut after ongoing Assembly elections.
"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 said.
Currently six states are electing their new assemblies and the entire polling process will be over by December 24.
Deora had earlier said a price cut was under consideration after the global slide in crude prices.
Global crude prices slid below $50 dollars a barrel last week.
Petroleum Secretary RS Pandey says the ministry would go to the Cabinet Committee on Economic Affairs (CCEA) with a comprehensive proposal highlighting the situation and the remedial steps that can be taken.
The issues to be highlighted are that prices of petrol and diesel can be revised in view of the profits made by the state-run oil firms on petrol and diesel since November 1, 2008.
CNN-IBN National Bureau Chief Bhupendra Chaubey reports that with General Elections due in April-May next year, the Central Government is of the view that reducing petrol and diesel prices will accelerate the downslide in inflation and also lift the economic gloom.
Prices of essential things like vegetables, other food items, etc is also expected to drop if fuel prices are cut.
Chaubey reports that in the last four Cabinet meetings seniors ministers like Lalu Prasad, Sharad Yadav and Sharad Pawar have been asking for a cut in fuel prices but Deora had been arguing that since the oil companies had suffered huge losses when the crude prices were high, so an immediate cut was not possible.
However, with the Bharatiya Janata Party pegging its election campaign on price, the Congress and the United Progressive Alliance Government has 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.
But Bharatiya Janata party Spokesperson Ravi Shankar Prasad alleges 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 says.
(With inputs from PTI)
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter and Google+)
 |
|
 |
 |
 |
|
displayed with permission. Use of the CNN name and/or logo on or as part of CNN-IBN does not derogate from the intellectual property rights of Cable News Network in respect of them.