With crude oil prices nose-diving, the government is contemplating to reduce prices of petrol and diesel after assembly elections in six states are completed next month.
“Crude has fallen from all-time high of $147 per barrel to around $50 now. Naturally, there are expectations that petrol and diesel prices should be reduced and we will do that,” Petroleum Minister Murli Deora said here on Tuesday.
The exact quantum of the reduction has not yet been decided. The reduction, depending on global crude price movements, could be also done in two phases.
Oil ministry officials indicated that prices of petrol and diesel and could go down by Rs 5 a litre and diesel by Rs 3 per litre, respectively.
The government had increased prices of petrol and diesel by Rs 3 and Rs 5 per litre and in June last year.
“We have to reduce prices but it will happen after assembly elections,” Deora said.