PETROL AND DIESEL PRICE

DIESEL PRICE LIKELY TO CUT-DOWN

New Delhi: A Rs2.50 per litre cut in diesel prices and a little less than Rs1 a litre on petrol is in offing as international oil rates fell to a 27-month low.
Prices may be cut after Maharashtra and Haryana assembly elections are completed on October 15, sources privy to the development said. Benchmark Brent crude on Wednesday slid by as much as $1.35 to $90.76 a barrel, its lowest level since June 2012. Prices have declined 18 per cent this year.
The drop in rates will result in profit on sale of diesel expand from Rs1.90 a litre calculated based on average rate prevailing in the second half of September. Despite wiping out of under-recoveries or the difference between retail selling price and its imported cost, on sale of diesel on September 16 and the subsequent res-ultant over-recovery to Rs1.90, the government has not cut rates due to election code.
Petrol on the other hand, had been deregulated in June 2010 and rates have since then moved every fortnight in tandem with the cost. Petrol rates last cut by 54 paise on October. Sources said a petrol price revision will take place on due date of October 15.