Diesel price cut, change in subsidy policy not before state polls

Freeing up of in India's diesel pricing policy, or even a cut in the fuel's retail price, will not happen before the state elections in Maharashtra and Haryana on 15 October, according to reports.

Apart from awaiting the election results in the two crucial opposition-ruled states, the BJP government at the centre also says that because of the electoral code of conduct they are not able to provide relief to consumers through a price cut, according to a CNBC-TV18 report.

There was expectation of cut in petrol prices of around Rs2 per litre but the report cited sources as saying oil marketing companies refrained from cutting prices on Monday in their fortnightly review because while Brent crude prices have come down, internationally there was not much change in oil prices, and any diesel price cut would have been miniscule.

However, backend work is on in the government and progressed so far as a cabinet note for diesel price deregulation and the subsidy-sharing mechanism. The petroleum ministry is keen to have a good formula in place.