After holding back a possible hike in diesel prices on September 30, apparently as Prime Minister Narendra Modi was away in the US, the Government has indicated that it may effect a substantial cut in the price of the 'aam admi' fuel after the results of the assembly elections in Haryana and Maharashtra are announced next week.
However petrol which is a de-regulated commodity, could see a downward revision by one rupee a litre on Wednesday when it will come up for fortnightly revision. "The Government will take the right decision at the right time," Petroleum Minister Dharmendra Pradhan said on Tuesday when asked about the impending diesel price cut.
Diesel, the nation's most consumed fuel that has a direct bearing on prices of essential commodities as it is the preferred fuel for the transport sector, is regulated or controlled by the Government. The fall in international oil rates last month led to situation where state-owned oil firms started making profit on diesel sales, the first time in history.
However, the benefit could not be passed on to consumers as the model code of conduct had come into place with the announcement of elections to Maharashtra and Haryana assemblies.