Now that the account has a healthy surplus and half of oil companies' dues have been paid off (by redeeming oil bonds), Ramamurthy feels it is time to share the booty with the consumer as well. ``The people may get a new year gift,'' the minister said, when prodded on the Centre's commitment to provide ``import parity'' in diesel prices. Taking a cue from sliding crude oil prices, prices of diesel have tumbled worldwide in the last few months. The monthly average of the Arab Gulf price of high speed diesel was $13.73 to a barrel in October.

In November, the average diesel price dropped to $12.24 a barrel and the average so far this month is $10.8 abarrel. The average of the Dubai crude price for the same period is $9.93 a barrel, or barely a few cents less than the price of diesel.

The fuel for power generation and transportation, incidentally, comprises almost 45 per cent of the 80 million tonne of petroleum products sold within the country. The truckers' fuel has turned cheaper four times and dearer only once, since policy-makers decided on an adjusted import parity in the price of diesel in September last year. The Union Government also decided to withdraw the Rs 2 per litre subsidy in the price of diesel. Adjusted import parity allows the Oil Coordination Committee, which monitors the oil pool account, to use some of the gains from low import price of diesel as cross-subsidy.

The Centre subsidises the consumer price of liquefied petroleum gas (LPG) and kerosene by making consumers of motor spirit (MS), aviation turbine fuel and to some extent diesel, pay more. Ramamurthy said most benefits of the drop in the global price of diesel had beenpassed on to consumers and more would follow. Diesel prices were pegged down each time import prices came down, except in December last year.