Diesel rate likely to be cut by Re 1/litre, petrol by Rs 1.75


New Delhi, Sept 30 (PTI): Diesel price is likely to be cut by about Re 1 per litre, the first reduction in rates in over five years, while petrol price may be slashed by Rs 1.75.

State-owned oil firms are likely to announce reduction in rates, made possible because of softening in international oil rates, this evening, government and industry sources said.

Under-recovery or the difference between retail price and its imported cost was wiped out and there was an over-recovery of 35 paise a litre from September 16. This over-recovery is now about Re 1 a litre.

While the government had resisted the temptation to cut rates then, prices are likely to be reduced at the fortnightly review due today.

Sources said oil ministry is of the view that while the Cabinet Committee on Political Affairs (CCPA) had on January 17, 2013 allowed a monthly increase in diesel price of 40-50 paise per month to wipe out the under-recovery, it wasn't envisaged that there would be over-recovery.

It wants to reduce diesel price to protect state-owned oil companies' market share, which may be lost to private retailers who would be selling diesel in tandem with international prices.

Oil Minister Dharmendra Pradhan is believed to have already written to Prime Minister Narendra Modi on the emerging scenario. Also, it has written to the Election Commission seeking their concurrence for the price decrease in view of state assembly elections in Maharashtra and Haryana.

This would be the first reduction in diesel rates in over five years. Diesel rates were last cut on January 29, 2009 when they were reduced by Rs 2 a litre to Rs 30.86.

Since then rates have only increased as international oil prices climbed. Since January 2013, diesel prices have been raised by up to 50 paise a litre every month to eliminate under-recoveries.

Like diesel, state-owned oil companies had also not changed petrol rates on September 16 though it warranted a 54 paise increase as its benchmark gasoline rates had firmed up in international market.
This is perhaps the first time that retail prices in India are higher than global rates. Oil companies calculate the desired retail selling price of petrol and diesel on 1st and 16th of every month based on average international benchmark price and rupee-dollar exchange rate.

The next revision in diesel and petrol prices is due today.

Originally, petrol and diesel prices were deregulated in April 2002 when NDA government was in power. Administered pricing regime, however, made a back-door entry towards the end of NDA regime in the first quarter of 2004 when crude prices started inching up.

Congress-led UPA controlled rates as international oil prices went through the roof. In June 2010, however, it freed petrol price from its control and rates have since them moved more or less in tandem with cost.

In January 2013, the UPA decided to deregulate diesel prices in stages through monthly 50 paise a litre increases. Rates were last raised on August 31 after which losses have been wiped out.

Rates have cumulatively risen by Rs 11.81 per litre in 19 instalments since January 2013.

  

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Comment on this article

  • Deep, Mlore

    Thu, Oct 02 2014

    Those who are not happy with price reduction can still pay the same price or give some tips to bunk labor. you know what I mean !!! This is for those anti modi peeps!!

    DisAgree Agree [4] Reply Report Abuse

  • Ashok, Managlore

    Wed, Oct 01 2014


    I think it is not Because of development, yesterday Indian subcontinent (including Pakistan) price comedown Because of oil price down

    DisAgree [4] Agree [5] Reply Report Abuse

  • Sudhir, Manglaore

    Wed, Oct 01 2014

    So many people can't swallow the truth of current developments . Why in last ten years global market never reduced oil price o wat ? only in last 3 months it reduced by 3-4 times o wat? jai MODI

    DisAgree [5] Agree [12] Reply Report Abuse

  • Bhaskar Acharya, Shirva

    Wed, Oct 01 2014

    Dongee Congee supporters in this forum may not accept the fuel price cut done by great Modi Govt. They will continue to buy the fuel at the old price!

    DisAgree [8] Agree [19] Reply Report Abuse

  • ilyas, qatar

    Wed, Oct 01 2014

    Diesel price not cut feku

    DisAgree [22] Agree [4] Reply Report Abuse

  • Sudhakar, Kallianpur

    Wed, Oct 01 2014

    ILyas,
    Because congress scissor is not sharp enough to cut!!!

    DisAgree [7] Agree [23] Reply Report Abuse

  • ilyas, qatar

    Wed, Oct 01 2014

    Den how come thise feku news all over india before cut ?feku always feku

    DisAgree [19] Agree [4] Reply Report Abuse

  • puneeth Kumar, udupi

    Wed, Oct 01 2014

    We all know,you people cut everything :-D

    DisAgree Agree [24] Reply Report Abuse

  • Peter, Brahmavar

    Wed, Oct 01 2014

    One rupee two rupee reduction in diesel or petrol prices not impact on common man.Gold rate and petrol rates governed by international markets.

    DisAgree [12] Agree [6] Reply Report Abuse

  • makeMyDay, makeMyDay

    Wed, Oct 01 2014

    it may not make huge difference to u Peter But For the transport sector it means a lot ie improved profit margin, reduction in overheads which will be help ease prices of the essential commodity a bit ... haven't u heard of a term "economies of Scale" in your economic class

    DisAgree Agree [1] Reply Report Abuse

  • RonRon, udupi

    Wed, Oct 01 2014

    keep a watch on crude price movement... before commenting here please

    DisAgree Agree [7] Reply Report Abuse

  • Anand, Mangalore

    Wed, Oct 01 2014

    It started with Rs.2, then likely to be Rs.1, but the reality is diesel price is untouched, only petrol price is reduced by .6 Still a good move!!! :)

    DisAgree [1] Agree [7] Reply Report Abuse

  • Deep, Mlore

    Wed, Oct 01 2014

    If we still had congress govt, Price of petrol would have been still increased to 85rs by now, even though market falls. We can see the change from the new govt.

    DisAgree [5] Agree [22] Reply Report Abuse

  • Prakash, Dubai

    Wed, Oct 01 2014

    Congress supporters should be more happy here who is behind Modi every day and commented day & night when price of diesel/petrol hike last time. Now they are going behind oil theory and some said we can drink petrol/diesel. Again Ulta kopdi. No one can beat them in Fekugiri. Because of your this kind of brain/support, congress got 44 seats in LS Election on May 16 2014, just understand and grow up.

    DisAgree [8] Agree [11] Reply Report Abuse

  • Prakash, Dubai

    Tue, Sep 30 2014

    Good Move by the BJP Govt.

    DisAgree [7] Agree [16] Reply Report Abuse

  • R. R. , Bahrain

    Tue, Sep 30 2014

    Petrol Price Cut by 65 Paise Diesel Untouched : NDTV | d On: September 30, 2014 21:44 (IST)

    DisAgree Agree [4] Reply Report Abuse

  • Mahendra Shetty, Mumbai Mangalore

    Tue, Sep 30 2014

    YAAN MASTU BHANJI JAALE THUTE AANDALA INCHINA MARDH DAANTHINA BHANJI JAALE THUTHUJI......YEINA MARDH KORNDALA MOGUL KAKKUNE ATHA MAARE......

    I THINK WE NEED TO SEND THESE PEOPLE TO SPECIALIST DOCTORS TO CURE THESE DISEASES.......IF NOT WE NEED TO SEND THEM PAKISTAN AND ITALY HOSPITAL TO SPECIAL MEDICAL CHECK UP......

    DisAgree [12] Agree [39] Reply Report Abuse

  • Albert, Mangalore

    Tue, Sep 30 2014

    Doctor who will be treating in Pakisthan is Bilawal Bhutto!!

    DisAgree [2] Agree [12] Reply Report Abuse

  • Sudhakar, Kallianpur

    Tue, Sep 30 2014

    Peter,
    You mean to say "Foolishly Elected Khangress Upadhyaksha (FEKU)", as said by Anirudh P in another article in DW.

    DisAgree [6] Agree [21] Reply Report Abuse

  • ABD, MANGALORE

    Tue, Sep 30 2014

    THANK YOU MODIJI!!!

    DisAgree [16] Agree [27] Reply Report Abuse

  • Harold D'cunha, Mangalore, India

    Tue, Sep 30 2014

    Very good move. Hope in Manglaore, the bus fare of city buses will be reduced.

    Any honest act of the govt. beneficiary to common man should be appreciable. Oil prices in International market has been reduced few weeks back. This news of reduction of prices is good news.

    DisAgree [5] Agree [25] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Tue, Sep 30 2014

    International Crude prices have fallen by around 10%, but since dollar remains in same range 59-62 Rupees, leaving less room for price fall. Once dollar starts falling, ache din will begin...this is not Modi effect.

    DisAgree [35] Agree [24] Reply Report Abuse

  • Hubert D'souza, Mangalore Dubai

    Tue, Sep 30 2014

    I Have Commented So Many Days Before Oil Prices Are Below 100 Dollars Per Barrel. Presently 97 Dollars Per Barrel. Not An Surprise News This. Expected!!!!!

    DisAgree [10] Agree [20] Reply Report Abuse

  • S.F.H, Indian

    Tue, Sep 30 2014

    I appreciate Modi Government on this regard.

    DisAgree [16] Agree [29] Reply Report Abuse

  • Oliver, Bangalore

    Tue, Sep 30 2014

    Perfect!!!

    All govt are same... when increasing over night it will be increased.. but when it's reducing it will "Likely to reduce..." in papers multiple times.. and after a long wait (just before election) it will come down.

    Only the problem with us.. if we are UPA supporter.. Finds only NDA doing like this and if we are NDA supporter.. Finds only UPA does this. Just like one of the commentor already told same way :)


    Regards,
    Oliver

    DisAgree [5] Agree [14] Reply Report Abuse

  • Amith, udupi

    Tue, Sep 30 2014

    Looks like some blind followers are going to have bath in diesel and drink petrol and start swayam swatch abhiyaan ...

    DisAgree [21] Agree [10] Reply Report Abuse

  • Dinesh Poojary, Kundapura/Bengaluru

    Tue, Sep 30 2014

    Amith, udupi

    Don't share your experience here. We are matured enough to distinguish water and oil.

    DisAgree [4] Agree [7] Reply Report Abuse

  • Raj, Bangalore

    Tue, Sep 30 2014

    J brothers are missing in this news..looks like they are lost in MODI wave....

    DisAgree [7] Agree [18] Reply Report Abuse

  • praveen, kulshekar

    Tue, Sep 30 2014

    Good News! I appreciate the move but further i do not want to see the prices rising double of what was reduced, the so called marketing and business tricks

    DisAgree [2] Agree [19] Reply Report Abuse

  • RSRB, Kundapura / Singapore

    Tue, Sep 30 2014

    If Sidhdhu is PM, he would have made separate counters for AHINDA in petrol station...

    DisAgree [30] Agree [35] Reply Report Abuse

  • Sudheer, Mangalore

    Tue, Sep 30 2014

    Not only for AHINDA separate counters for minority too

    DisAgree [8] Agree [17] Reply Report Abuse

  • Raj, Bangalore

    Tue, Sep 30 2014

    No siddu will start petrol & diesel bhagya to minorities.

    DisAgree [4] Agree [8] Reply Report Abuse

  • MILAN, DXB

    Tue, Sep 30 2014

    this only to please fool people of india. each day indian rupee going weak to weaker. cutting petrol and diesel will make even worser.

    DisAgree [25] Agree [13] Reply Report Abuse

  • Sudhakar, Kallianpur

    Tue, Sep 30 2014

    Lungiwala News: Some of Modi haters in Udupi and Mangalore announced that they will not avail this facility, since reduction in any commodities is against the congress culture.

    DisAgree [20] Agree [33] Reply Report Abuse

  • Vikram, Mangalore

    Tue, Sep 30 2014

    In 4 months it's 3rd time fuel price got reduced. Means in a year 9 times and for 5 years 45 times it will reduces.
    Each time if it reduce by 1 rupee means. At the end of 2019 petrol price will be 40 to 45 rupees.
    Great News, request to people before commenting on Modiji please think and act.
    NaMo long live.. god bless you..

    DisAgree [13] Agree [25] Reply Report Abuse

  • Dinesh Poojary, Kundapura/Bengaluru

    Tue, Sep 30 2014

    This is how our TRUE INDIAN Govt wishes DASARA/VIJAYA DASHAMI to 110 Crores people.

    DisAgree [22] Agree [57] Reply Report Abuse

  • avani, mlore

    Tue, Sep 30 2014

    Dear Dinesh, of course this is a happy news. But I am seeing since last 1 month this news coming 3rd time as "likely to be reduced". Last couple of times when it came "likely" it was not done in real. Hope this 3rd time they will do it in reality.

    DisAgree [22] Agree [24] Reply Report Abuse

  • sudhir, Mangalore

    Wed, Oct 01 2014

    avani,

    guess you don't fill petrol or you never went to fill it. coz in June price was 79 and now its 73 from tmrw. without knowing things we should not comment.

    DisAgree Agree [1] Reply Report Abuse

  • KKR, Mangalore

    Tue, Sep 30 2014

    All modi haters club members must be standing in petrol pump que with can!!!

    DisAgree [23] Agree [65] Reply Report Abuse

  • RSRB, Kundapura / Singapore

    Tue, Sep 30 2014

    KKR, Mangalore

    Also, instead of telling Diesel korle... they must be telling MODIiesel korle.... :-)064

    DisAgree [13] Agree [24] Reply Report Abuse

  • Jayaram, Kinnigoli

    Tue, Sep 30 2014

    RSRB

    Why are you replying to your own comment?

    DisAgree [7] Agree [9] Reply Report Abuse

  • Lingappa, Kuppepadavu/Amsterdam

    Tue, Sep 30 2014

    The devotees of 5th std educated bar maid Antanio Maino Khan and her Son Raul Vinci Khan may not be able to digest this.

    DisAgree [19] Agree [41] Reply Report Abuse

  • Dinesh Poojary, Kundapura/Bengaluru

    Tue, Sep 30 2014

    Previous Govt used to hike FUEL PRICES before every Hindu Festival. You can understand their motto.

    DisAgree [20] Agree [46] Reply Report Abuse

  • jeevan, mangalore

    Tue, Sep 30 2014

    Ache din aane wale hai.....

    DisAgree [20] Agree [47] Reply Report Abuse

  • Peter, Bangalore

    Tue, Sep 30 2014

    Last August Dharmendra Pradhan was announced that Petrol/Diesel prices will be cut on Independence day.

    DisAgree [22] Agree [13] Reply Report Abuse

  • Sudhakar, Kallianpur

    Tue, Sep 30 2014

    Peter,
    Did he mention which year.

    DisAgree [7] Agree [37] Reply Report Abuse

  • jeevan, mangalore

    Tue, Sep 30 2014

    What a tit for tat reply.. ha.ha.ha...

    DisAgree [8] Agree [17] Reply Report Abuse

  • Peter, Bangalore

    Tue, Sep 30 2014

    Some Feku even promised that he bring black money within 100 days .. Might be next century or next birth!!

    DisAgree [15] Agree [14] Report Abuse

  • Vikram, Dubai

    Tue, Sep 30 2014

    SOME BAD SOULS STILL ARE NOT HAPPY... I THINK EVEN REAL GOD ALSO CANNOT MAKE THEM SATISFIED!!!!!!

    DisAgree [10] Agree [17] Reply Report Abuse

  • abhyankar, mumbi

    Tue, Sep 30 2014

    when rate increased as per readers it was governments failure so now its sucess of the government. Jai ho nodi ji ki

    DisAgree [10] Agree [21] Reply Report Abuse

  • HARISH MANGALORE, JEPPU

    Tue, Sep 30 2014

    Where is our mumbai feku jossy saldhana. can he comment now about acche din aya yey nahi....who is real feku now indian people understand.

    DisAgree [14] Agree [39] Reply Report Abuse

  • jeetendra hegde, mumbai

    Tue, Sep 30 2014

    I hope atleast for someone this is not fake news by "feku" coz this is 8th time fuel price is ped after spiritual NDA government took power at the centre...

    DisAgree [7] Agree [25] Reply Report Abuse

  • Sandesh Shetty, Bangalore/Kudla

    Tue, Sep 30 2014

    jeetendra hegde, mumbai they cannot digest this good development work done by our NDA. So are not seen in this forum today.

    DisAgree [7] Agree [13] Reply Report Abuse

  • abhyankar, mumbai

    Tue, Sep 30 2014

    slow by slow some biased readers saldanha ismail perinje , nawaz kukiinakatte will disappear wacthing daiji news . they wont like any good things done to the people by NDA

    DisAgree [4] Agree [11] Reply Report Abuse

  • jeetendra hegde, mumbai

    Tue, Sep 30 2014

    hhhhh...at present obama himself worried ...keep all these you named aside......*

    DisAgree [2] Agree [1] Reply Report Abuse

  • Shivaram Poojary, Bantwal

    Tue, Sep 30 2014

    Good move of Modi govt and take immidiate action of reduce rate of daily uses things of people.
    Good luck NDA govt

    DisAgree [6] Agree [23] Reply Report Abuse

  • John DSouza, Belman/Bejai/Qatar

    Tue, Sep 30 2014

    In life journey a child becomes independent on maturity, but why we carry and move the heavy burden on wheels from starting point till the end of the journey?
    Why can’t we use the heavy weight on wheels as a powerful pushing to save huge a volume of fuel and also to generate a considerable volume of energy?
    While we enjoy mobile revolution, why we suffer the automobile evolution?

    DisAgree [7] Agree [6] Reply Report Abuse

  • Rakesh shetty, mangalore

    Tue, Sep 30 2014

    GOOD MOVE. HATS OF TO BJP GOVT.

    I AM SURE IT WILL REDUCE FURTHER SOON WE WILL GET PETROL AT 50Rs & DIESEL 30Rs.

    JAI HO NAMO.

    DisAgree [24] Agree [54] Reply Report Abuse

  • Wilson, Doha

    Tue, Sep 30 2014

    FYI,This policy was made by congress not BJP............

    DisAgree [17] Agree [10] Reply Report Abuse

  • Sudhakar, Kallianpur

    Tue, Sep 30 2014

    Wilson,
    Congress made hundreds of policy, but not implemented!

    DisAgree [6] Agree [12] Reply Report Abuse

  • pradeep, Mangalore

    Tue, Sep 30 2014

    ..Another CAPSLOCK drama artist.

    DisAgree [2] Agree [5] Reply Report Abuse

  • vinayak, mangalore / dubai

    Tue, Sep 30 2014

    Though the move of reduction is prevailed due to international oil price, I must say that modi govt has been honest towards the public. If it was congress, they would never has taken this step and would have only stuffed their bank accounts. This is the start of change... and hope it picks up the speed.

    DisAgree [9] Agree [34] Reply Report Abuse

  • jeevan, mangalore

    Tue, Sep 30 2014

    Wow... This is called Modivata...

    DisAgree [25] Agree [53] Reply Report Abuse

  • KKR, Mangalore

    Tue, Sep 30 2014

    Achhe din for comman man !!!

    DisAgree [11] Agree [41] Reply Report Abuse

  • Af, mangalore

    Tue, Sep 30 2014

    essential commodities like petrol and diesel should be uniform price across India,irrespective of state and central taxes.

    DisAgree [7] Agree [31] Reply Report Abuse

  • Anil Angelo D, souza, Mulki

    Tue, Sep 30 2014

    Jab tak suraj chand rehega
    Modi ka naam roshan rehega.....

    DisAgree [19] Agree [41] Reply Report Abuse

  • ROVIN, managlore

    Tue, Sep 30 2014

    J ANATA ITS NOT NDA OR GOVT MOVE ITS MARKET MOVE, GOVT NOT REDUCED ANY TAX. ITS COST OF OIL COME DOWN IN GLOBE. IF GOVT REDUCE TAX THEN I CAN AGREE WITH YOUR COMMENTS

    DisAgree [46] Agree [33] Reply Report Abuse

  • tax man, ullal

    Tue, Sep 30 2014

    so u think, its better to deregulate the oil prices.. is it.?

    DisAgree [7] Agree [4] Reply Report Abuse

  • John DSouza, Belman/Bejai/Qatar

    Tue, Sep 30 2014

    Good news for festive season. A concept change can save 25 times of it.
    Think straight and talk straight, think different and implement change.
    Smart phone is smarter by mobile revolution, but the automobile still carry and move.

    DisAgree [2] Agree [35] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Tue, Sep 30 2014

    Great move by NDA Govt, long live Modi

    DisAgree [40] Agree [68] Reply Report Abuse


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Title: Diesel rate likely to be cut by Re 1/litre, petrol by Rs 1.75



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