Fuel price cut: BJP to move EC, Cong snubs charges

Petroleum Minister Murli Deora earlier said the Government will cut petrol and diesel prices after December 24 when the Assembly elections are over.

“The international prices have fallen and there is an expectation that prices need to be reduced. I am also of the opinion that they should be reduced and that will happen after December 24,” Deora said.

Asked whether BJP will approach the Election Commission on the issue, Malhotra said the party will file a complaint with the Commission.

“The announcement will certainly benefit the ruling coalition at the Centre and we will file a complaint with the Election Commission,” Malhotra said.

However, Malhotra maintained that people in Delhi are fed up with the Congress’ “misrule” and stressed that his party will bounce back to power this time after sitting in the opposition for ten years.

“I am confident of getting two-third majority in Delhi as people are fed up with the misrule of the corrupt Congress Government,” he added.

You don’t want Fuel-price cut?

Congress sought to turn the table on BJP over its threat to approach the Election Commission in regard to the Government’s intention to reduce the prices of petroleum products, wondering whether the saffron party was against any cut.

“For the sake of the people we are prepared to face anything. We have not committed any offence,” party leader M Veerappa Moily said.

Wondering over the BJP move, he asked whether the saffron party does not want any reduction when crude prices have come down so much.

It reflects “insensitivity” of the BJP, he said. Moily, however, said Petroleum Minister Murli Deora should have made the statement earlier.

But at the same time, he said, the prices are not being reduced for the sake of election even if international prices have come down.

His comments came close on the heels of BJP’s threat that it will take up the issue with the Election Commission as Deora’s statement amounts to “violation of model code of conduct.”

The BJP termed the Centre’s intention to reduce petrol and diesel prices after the Assembly polls as an attempt to woo voters.

“This is a violation of the model code of conduct aimed at wooing the voters ahead of the assembly elections in many states,” senior BJP leader V K Malhotra said earlier.

Deora announces price cut

Earlier, Petroleum Minister Murli Deora announced that the Govt will cut petrol and diesel prices after Assembly elections are over on December 24.

“The international prices have fallen and there is an expectation that prices need to be reduced. I am also of the opinion that they should be reduced and that will happen after December 24,” Deora said.

Based on the average international oil prices in the first fortnight of November, state-run firms are earning a margin of Rs 16 crore per day on petrol and Rs 5 crore a day on diesel.

However, they continue to lose on kerosene sold through ration shops and domestic LPG. Kerosene is being sold at a loss of Rs 22.40 a litre and LPG at Rs 343.49 per cylinder.

The fall in international oil prices will result in lower revenue loss on fuel sales this fiscal.

Petroleum Secretary R S Pandey said the ministry would go to the Cabinet Committee on Economic Affairs (CCEA) with a comprehensive proposal highlighting the situation and the remedial steps that can be taken.

The issues to be highlighted are that prices of petrol and diesel can be revised in view of the profits made by the state-run oil firms on petrol and diesel since November 1, 2008.

However, the combined net loss of over Rs 14,000 crore incurred by oil companies on fuel sales also needs to be taken into account.

“Thirdly, as per our calculations, there will be an under recovery of Rs 1,10,000 crore on sale of fuel this fiscal. In what form these need to be covered will also be flagged with the CCEA,” Pandey said.