It’s been a long time coming and
it’s finally happened. The
Indian Government has decided to cut fuel prices . Effective from December Sixth
a litre of Petrol will cost five rupees lesser than before while Diesel will be
two rupees cheaper. As the price of crude oil worldwide takes a tumble and puts
the world’s leading oil producers in the form of the OPEC countries in a tizzy, the rest of the world can take it easy
for the short term. In India the decision to cut fuel prices is just as much a political
decision as an economic one.
The only piece of good news that
has been coming in amongst the financial chaos in India and the world for the
past few weeks has been the decline of inflation and today continued that
sentiment to some extent. Inflation has now fallen below 11% and the figures
released today indicate the present number at 10.68%.The figure itself is not something to cheer about. A 10%
inflation is still high but the declining rate of inflation from a high this
year of Thirteen Percentto what could
in a month’s time be a single digit number has been encouraging.
Submitted by Financeman on May 28, 2008 - 10:42pm.
The government seems to be in a fix on how to increase the prices of fuel. The Oil companies are incurring huge losses and its almost inevitable that prices will rise. The question is...by how much?
The finance and the petroleum ministry doesnt seem to agree on the range of the price hike. One line of thought is that prices of Petrol should be hiked by around Rs 4-5 while Diesel by Rs. 1-2 per litre.
It’s been a long time coming and
it’s finally happened. 
The only piece of good news that
has been coming in amongst the financial chaos in India and the world for the
past few weeks has been the decline of inflation and today continued that
sentiment to some extent. Inflation has now fallen below 11% and the figures
released today indicate the present number at 10.68%.The figure itself is not something to cheer about. A 10%
inflation is still high but the declining rate of inflation from a high this
year of Thirteen Percent