NEW DELHI: A Rs 3.56 per litre cut in diesel prices is in the offing as slump in international oil prices have helped nearly doubling of profit on India's most consumed
fuel.
With crude prices dipping to four-year low, the over-recovery or profit on diesel sales, which was Rs 1.90 a litre in first half of October, has now climbed to Rs 3.56 per
litre, an official statement said here.
State-owned fuel retailers made their maiden profit on diesel in second half of September with a modest over-recovery of 35 paise.
This swelled to Rs 1.90 in first half of October and stands at Rs 3.56 per litre now.
Over-recovery or profit should have in natural course translated into a price reduction to bring retail selling price at par with cost.
But rates have not been cut due to
election code being in force for the assembly polls.
The model code of conduct will be lifted with the announcement of results of elections to Maharasthra and Haryana assembly on Sunday.
Sources said since reduction in rates of a commodity controlled by the government could have been seen as a move to lure voters, the Election Commission did not give
permission to reduce rates.
Petrol, on the other hand, is a deregulated commodity where oil companies enjoy pricing
freedom.
As a consequence, oil companies
have cut rates half a dozen times during recent months in step with international trend. Rates were last cut by Re 1 a litre yesterday.
http://m.timesofindia.com/business/india-business/Cut-in-diesel-prices-by-Rs-3-56-per-litre-in-offing/articleshow/44837050.cms
fuel.
With crude prices dipping to four-year low, the over-recovery or profit on diesel sales, which was Rs 1.90 a litre in first half of October, has now climbed to Rs 3.56 per
litre, an official statement said here.
State-owned fuel retailers made their maiden profit on diesel in second half of September with a modest over-recovery of 35 paise.
This swelled to Rs 1.90 in first half of October and stands at Rs 3.56 per litre now.
Over-recovery or profit should have in natural course translated into a price reduction to bring retail selling price at par with cost.
But rates have not been cut due to
election code being in force for the assembly polls.
The model code of conduct will be lifted with the announcement of results of elections to Maharasthra and Haryana assembly on Sunday.
Sources said since reduction in rates of a commodity controlled by the government could have been seen as a move to lure voters, the Election Commission did not give
permission to reduce rates.
Petrol, on the other hand, is a deregulated commodity where oil companies enjoy pricing
freedom.
As a consequence, oil companies
have cut rates half a dozen times during recent months in step with international trend. Rates were last cut by Re 1 a litre yesterday.
http://m.timesofindia.com/business/india-business/Cut-in-diesel-prices-by-Rs-3-56-per-litre-in-offing/articleshow/44837050.cms
