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Diesel prices slashed

The government today announced reduction in the prices of diesel with effect from midnight tonight to maintain in parity with the fall in diesel prices in the international market.

Announcing this after inaugurating an exhibition in connection with the third International Petrotech-99 in New Delhi, the minister for petroleum and natural gas, Vazhapadi Krishnan Ramamurthy, said that accordingly the price of diesel in Delhi will be reduced by 98 paise per litre, in Calcutta by Rs 1.05 per litre, in Bombay by Rs 1.15 per litre and Madras by Rs 1.10 per litre.

The existing price of diesel in Delhi is Rs 9.87, in Calcutta Rs 10.16, in Madras Rs 10.89, and in Bombay Rs 11.19 paise per litre.

The diesel price was last revised downward on May 20, 1998.

The reduction in diesel price was estimated at between 12 to 13 per cent, official sources said.

To a query, Ramamurthy said the question of reducing the subsidy on LPG would be reviewed after two months.

Giving the reason for the delay in announcing the cut in diesel price, the sources said the international price was fluctuating widely and rapidly. Only after the international price stablised could the government announce the cut.

The sources replied in the negative when asked whether consumption of diesel would go up because of reduction in its price.

The country imports about 14 million tonnes of diesel annually.

The price of compressed natural gas had been increased by Rs 15 in Bombay. The companies were free to revise its price upward in Delhi, Vadodara and Surat, the sources said.

UNI

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