India Inc happy with fuel price cuts, wants more | business | Hindustan Times
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India Inc happy with fuel price cuts, wants more

business Updated: Dec 05, 2008 21:13 IST

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Welcoming the government's decision to reduce prices of petroleum products, India Inc on Friday said there is scope for further cuts as crude oil prices in the international market have dropped from about $147 to less than $43.

While chambers like Ficci and the CII said the fuel price cut would further ease inflationary pressure, Assocham said it was expecting a cut of Rs 10 per litre on petrol.

The government today reduced petrol prices by Rs 5 and diesel prices by Rs 2 per litre.

"It is a very timely move because this will further control inflationary pressure and benefit all sections of society," Ficci Secretary General Amit Mitra said.

For the fourth consecutive week inflation fell, and it was 8.40 per cent for the week ended November 22.

"This (price cut) must have been done to drive up sentiment and also bring down inflation further," CII Director General Chandrajit Banerjee said.

"The decision was expected. Since the prices have come down from around $150 per barrel to less than $50, people were expecting a reduction of Rs 10 in petrol per litre and at least Rs 3.5 in diesel per litre," Assocham Secretary General D S Rawat said.

"I am sure the government shall be reviewing the fuel prices from time to time and if the crude prices continue to hover in the range of $50 per barrel, the government will further reduce prices," he added.

The price of the Indian basket of crude oil, at which the country imports, slipped to $41.53 a barrel on December 4 from a peak of $142.04 on July 3.

The government in June increased the price of petrol and diesel by Rs 5 and Rs 3 per litre and cooking gas by Rs 50 per cylinder to help the oil-marketing companies tide over l