Government may announce fuel price reduction Today. The price of petrol was lowered by 5 rupees per litre, or b, from 45.62 rupees ($0.93) in New Delhi, while diesel will be 2 rupees, or 6 percent, cheaper from the current retail price of 32.86 rupees in the Indian capital. mThe government cut fuel prices by up to 11 percent on Wednesday, its second reduction in nearly two months, as crude's $100 fall since last July gave the government a chance to pass on the benefit to consumers ahead of elections. India's cuts followed those of Asian peer China, which in mid-January reduced prices to reflect changes in global crude rates and unveiled measures to promote fuel efficiency.
Oil Minister Murli Deora said the cuts would become effective midnight. Deora said no decision had been taken on deregulating fuel prices or changing the tax structure for the sector. A government official had earlier said ministers were likely to end price controls on transport fuels and allow firms to set market-determined prices.
India's economy has braked sharply in recent months, cutting demand for oil products, and GDP expansion in the fiscal year to March-end is expected to moderate to 7 percent from 9 percent levels in each of the past three years. Crude oil imports slumped in December to their lowest in over four years despite the commissioning of Reliance Petroleum's new 580,000 barrels per day refinery. Oil demand in Asia's third largest consumer is likely to have slowed down in January because of a strike by millions of truckers, while dealers would have trimmed inventories anticipating the cut in fuel prices.
Govt in pre-poll mode, cuts fuel prices-
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