The government has reduced petrol prices by Rs 5/L and diesel prices by Rs 2/L. This is the first time in past two years that the government has announced a price cut for automotive fuels. The decision was aimed at stimulating demand in a sagging economy.
The revised fuel prices in Bangalore are Rs 51.71 a litre of petrol and Rs 36.97 a litre of diesel, in Mysore it is Rs 51.30 a litre of petrol and Rs 36.85 a litre of diesel, in Mangalore the petrol will now cost Rs 50.98/L and diesel Rs 36.50/L, and in Delhi the revised rates include Rs 45.62 a litre of petrol and Rs 32.86 a litre of diesel. There is no change in the LPG price as some of the state-run oil marketing companies are still experiencing loss in their sales.
The decision of the government to cut down fuel prices prior to the day when Central Bank is to cut the excise duty is completely aimed at boosting the Indian economy.
According to the general secretary of Federation of All-India Petroleum Traders, Ajay Bansal, automotive drivers were expecting higher reductions because of the steepest fall of the oil barrel in over four years. Understanding the mood of these automotive owners, further reductions in fuel prices are speculated at the time of announcement of Lok Sabha elections.