New Delhi, Feb 26: Petroleum Minister Murli Deora said that the government has no immediate plan to cut diesel prices. Usually it is the Cabinet Committee on Political Affairs (CCPA) that deliberates fuel price revision and speculations are high that the government may come up with last minute pre-poll sop in the meet.
However with oil-firms earning a profit of Rs 3.26/litre, a reduction in retail rates is on the cards as this would help to bring down the inflation further and thereby widening the scope for more reduction in interest rates and help deepen the impact of the government's economic stimulus packages.
This can also result in lowering of prices of essential commodities as the transport charges go down. If the government reduces diesel prices, it will be the third time in 3 months. First it was reduced in Dec, followed by Jan as crude oil prices fell to a four year low.