As pre-poll strategy Centre may cut petrol, diesel price by Rs.10

Kochi: As a pre-poll strategy, the Central government is planning to slash the price of both petrol and diesel by Rs.10. This will provide a major relief to people and is expected to arrest the food inflation spiraling.

Media reports say that the Petroleum Ministry has sent a proposal to the Prime Minister’s office in this regard. But nobody knows for sure when the PM office will take a call on this.

Industry and market pundits are of the view that the condition is very much conducive for a price cut since the crude oil price is on a downward course. Currently, in the international market, crude oil is traded at $70 to $80 per barrel. Adding fuel to the price fall of the commodity the market expects a glut in supply in 2004. Against this background, say analysts, the geopolitical situations, especially worsening West Asian tension, and the insecure Red Sea would have only negligible impact on the oil price front.