Government May Cut Deiesel Price Again by 2 Rs.

Before Election Govt. may provide a pre-poll bonanza by cutting fuel price. the government may cut diesel price by Rs 2 a litre in a "day-or-two" but there would be no reduction in petrol prices.Government wants to announce the price reduction, on top of the Rs 4 a litre cut in two installments since December, before General Elections are announced, an official said.
"The Cabinet may meet in a day-or-two to decide on the reduction," he said. "Most likely, the Cabinet may meet tomorrow." A reduction in diesel price would pull down inflation and make goods transportation, especially fruits and vegetables, cheaper.
However, there would no reduction in petrol rates, which in two installments had already been slashed by Rs 10 a litre. State-owned fuel retailers Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum are selling petrol at almost break-even point while they make Rs 3.26 a litre profit on diesel sales.