Freight rate of diesel, petrol cut by 5 pc: Lalu

New Delhi, Feb 26 (UNI) Railway Minister Lalu Prasad today announced a 5 per cent cut in the freight rates of diesel and petrol as part of measures to check the rising prices of the two fuels which have been partly responsible for the spiralling inflation.

While there was no across the board increase in freight rates in the Railway Budget 2007-08 presented in the Lok Sabha, the Minister announced an exclusive package for cement traffic.

There would be a 20 per cent cut in freight rates during lean season and 15 per cent during peak season under a two-leg freight discount scheme for covered wagons in up and down directions for distances above 700 km.

General Managers of Zonal Railways would be delegated powers to offer this discount on traffic with a lead of less than 700 km also under certain conditions.

A commodity-based freight policy would be formulated to better address the needs of customers for major commodities. This would be introduced on an experimental basis from April 1 through an exclusive package for cement.

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