The UPA government may soon make another round of cut in diesel woo voters, especially farmers before the declaration of dates for general election.
This speculation was widespread in Delhi since last two-three days as for gaining maximum political profit before the election, the government can make another rounds of cut viewing to have a scope of cut in diesel prices, which is currently being sold at above Rs.3 from the international market prices.
If the prices of crude oil slips below $35 a barrel, the oil ministry can reduce the prices of diesel, said ministry sources. At present the prices of crude oil is hovering $38 to $40 per barrel.
Earlier, the fuel sector was expecting that the stand-in finance minister Pranab Mukherjee could make any announcement in his budget speech, but he had no surprise then. However, on Wednesday, when interim budget-2009 and financial bill-2009 were passed and FM announced some popular announcement, the speculation got stormy.
However, the Union Petroleum and Natural Gas Minister Murli Deora has denied to any sort of speculation that government is considering to reduce the prices of diesel at present, but he has made no comments over the issue of reviewing the prices of diesel in the coming cabinet meet.
On the other hand, as per official sources, the ministry might table this proposal before the cabinet in the next meeting if it happens in the next two-three days. And if it is not, ministry can sought permission to the election commission to reduce prices after declaration of election date that is schedule in April-May this year.
Earlier, the government has already made two rounds of cut in fuel prices. In December last, petrol price was brought down by Rs.5 and diesel by Rs.2, while in January 28 this year, a deduction of Rs.5 in petrol, Rs.2 in diesel along with Rs.25 slash in domestic gas cylinder were announced.
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