Plan to cut fuel prices sparks row

New Delhi: Bowing to in-house political pressure, the government is set to reduce motor fuel prices by Rs 5 a litre for petrol and Rs 3 for diesel after the current round of assembly polls are concluded, oil minister Murli Deora said on Tuesday.
Though Deora said the decision to wait till state elections conclude was out of deference to the poll code, the announcement immediately led to howls of protest from BJP and UPA's former ally, the Left, who said this was a form of "appeasement'' when state elections were still in progress. BJP threatened to move the Election Commission on the matter.
"Crude has fallen from an all-time high of $147 per barrel to around $50 now. Naturally, there are expectations that petrol and diesel prices should be reduced and we will do that. We have to reduce prices but it will happen after assembly elections,'' Deora said on the sidelines of a conclave of energy ministers from Russia and CIS countries here.
TOI had first reported on September 8 that the UPA leadership was moving towards reducing fuel rates after oil prices slid for eight weeks. The reduction will bring motor fuel prices back to the level that prevailed till June 4 when the government had decided to raise these prices, including that of cooking gas by Rs 50 a cylinder.
On November 25, TOI reported that the cut was imminent as Congress managers had conveyed to Deora their rejection of arguments being given to delay cutting pump prices even when international crude had come down to nearly one-third of its July peak.
26/11/08 Times of India

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Categories: Indian Aviation- In General Nov 2008