Industry bosses welcome fuel price cut

New Delhi, Nov 29 (UNI) Lauding the government's decision to cut the fuel price, the industry captains today said it would contain inflation while providing much-needed respite to the end-users.

The Government today reduced the prices of petrol by two rupees per litre and diesel by one rupee a litre in view of the softening of prices in the international market.

''The oil companies will have problems of contending with under-recoveries vis-a-vis diesel. They are already losing 41 paise per litre,'' CII Principal Advisor (Energy) V Raguraman said.

This will get accentuated with this reduction, he added.

Assocham President Anil K Agarwal said with the curtailment in prices of diesel and petrol, the rising inflation will not only come down, but prices of essential commodities, transportation cost to industry and common masses will come down reasonably.

The Chamber has suggested the government should empower its oil marketing companies to independently increase and decrease the prices of petroleum products as and when the international oil scenario call for it.

Reacting to the cut in petrol and diesel prices, FICCI said, while the move will help contain prices by bringing down the cost of transportation of essentials and afford relief to petrol and diesel consumers.

The reduction in retail prices will hurt oil companies which are already smarting under pressure from reduced margins, it added.

UNI DKS SRS HT1900