THE UPA-led Government at the Centre cut retail prices of petrol and diesel by 4.25 per cent and 3 per cent respectively on Wednesday citing lower prices of crude. As a result, the prices of petrol and diesel in the City will now be Rs 49.17 and Rs 36.72 respectively.
The revised prices have become effective from Wednesday midnight. The lowering of prices of both fuels have brought a great relief to consumers in the City. Once people came to know about it, almost all petrol pumps in the City registered a low sale on Wednesday evening. “The day’s sale of petrol has gone down below 50 per cent,” said the Indian Oil Corporation and the Hindustan Petroleum-run petrol pump managers.
The prices of widely used kerosene and cooking gas were left unchanged. Analysts said the price cut was partly political but also could be a move to bring down annual inflation.
The government increased prices in June for the first time in nine months to reduce losses at state-run fuel retailers, which are not allowed to increase prices without government permission after global crude prices soared. In June, petrol price went by 9.2 per cent and diesel by 6.6 per cent.
“The government should now seriously think to stick to the new prices, instead of again increasing the price. The decision will be a big relief to common man,” remarked Dr Lal Bahadur Chouhan.