India Friday allowed its state-run fuel retailers to cut prices of gasoline and diesel for the first time in 22 months to give a boost to its slowing economy, with cushion coming from the $100 per barrel drop in global crude oil prices.
Companies like Indian Oil Corp were allowed to cut their prices by Rs.5 a litre on gasoline and Rs.2 a litre on diesel. The prices of cooking gas distributed to households under a subsidised system were, however, kept unchanged.
“We are reducing the prices with effect from midnight,” Petroleum Minister Murli Deora told reporters after it was cleared at a meeting chaired by Prime Minister Manmohan Singh.
Indo-Asian News Service