NEW DELHI: Petroleum and Natural Gas Minister Murli Deora said after a meeting of the Cabinet Committee on Political Affairs (CCPA) on Wednesday that the fuel prices were cut “keeping in tune with the falling crude oil prices in the international markets and the commitment of the UPA to give relief to the common man at large. It is for the first time that a reduction in LPG cylinder prices has been undertaken as earlier decisions were about rollbacks,” he said.
The government on December 5 reduced the price of petrol by Rs. 5 a litre and diesel by Rs. 2. However, it left the LPG cylinder untouched. The political clearance for the fuel price cut came on Tuesday when Congress president Sonia Gandhi announced that fuel prices would be reduced further very soon.
Crude prices in the international market are now ruling at around $44 a barrel and the Indian basket has fallen to almost $42.66.
When crude was scaling over $120 a barrel, the government in June increased the prices of petrol by Rs. 5 a litre, diesel by Rs. 3 a litre and LPG by Rs. 50 a cylinder. Even then the government had taken the average crude price of around $67 a barrel.
The increase had resulted in petrol costing Rs. 50.56 a litre in Delhi from Rs. 45.56 a litre.