Petrol price reduced

By Our Economy Bureau | 16 Nov 2004

New Delhi: Oil companies have reduced the price of petrol by up to Rs1.26 per litre. The price of diesel remains unchanged. "The prices have been decreased due to the falling international prices. While petrol was at import parity, diesel, which is linked to half the import parity, was short of about Rs1.24 per litre than the international price. Therefore, the fall in international prices is only being transferred in case of petrol, while in diesel, the decline is being used to cover for losses," official sources said. Petrol will now cost Rs37.84 per litre in Delhi, a decrease of Rs1.16 per litre from the earlier level of Rs39 per litre. The CPI (M) said the cut in the prices of petrol was "inadequate" and asked the government to reconsider the hikes in the prices of other petroleum products as well.

"The reduction only in the price of petrol is inadequate. We have been asking the government to review its petroleum pricing policy, especially after the dismantling of the administered price mechanism," CPM polit bureau member, Sitaram Yechury, said. He said the international crude prices had fallen substantially and the government should now reconsider hikes in other petroleum products such as diesel and LPG.