Rs 2.50/litre Cut in Diesel Price Likely After State Elections

Published: 14th October 2014 08:12 PM  |   Last Updated: 14th October 2014 08:12 PM   |  A+A-


NEW DELHI: A Rs 2.50 per litre cut in diesel prices, the first in over four years, is likely after results of assembly polls in Maharashtra and Haryana are announced on Sunday. Petrol price, which unlike diesel is a deregulated commodity, is likely to see a price reduction of about Re one a litre at the next scheduled revision due tomorrow.

"The government will take the right decision at the right time," Oil Minister Dharmendra Pradhan said when asked about the impending diesel price cut.     Diesel, the nation's most consumed fuel that has a direct bearing on prices of essential commodities as it is the preferred fuel for the transport sector, is regulated or controlled by the government.   

The fall in international oil rates last month led to situation where state-owned oil firms started making profit on diesel sales, the first time in history. However, the benefit could not be passed on to consumers as the model code of conduct had come into place with the announcement of elections to Maharashtra and Haryana assemblies. 

Since reduction in rates would have been a new policy, are vision was deferred.    

"As you are aware, election code of conduct is in place so will decide on the issue at the right time," Pradhan said without elaborating. 

Asked if rates will be cut, he retorted, "Wait for the decision which we will take at the right time."     

Benchmark Brent crude today fell to the lowest level in almost four years after the International Energy Agency said oil demand will expand this year at the slowest pace since2009. Brent crude price declined USD 1.36, or 1.5 per cent, to USD 87.53 a barrel in London trading.   The drop in rates will result in the profit on sale of diesel expanding from Rs 1.90 a litre calculated based on the average rate prevailing in the second half of September.

Oil industry wants diesel rates to be reduced to protect their market share which they otherwise would lose to private retailers, who price the fuel in tandem with international prices.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp