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Government may dole out lower diesel prices as Diwali gift

Oil marketing companies have seen a profit of Rs 1.90 per litre in the September16-October 1 fortnight, but the government is not likely to pass on the full benefit.

Government may dole out lower diesel prices as Diwali gift

The News International Team

The Modi government is likely to announce a diesel price cut to coincide with Diwali after the counting of Maharashtra and Haryana assembly poll results. This will be the first diesel price cut in five years if it goes thorugh.

The government has found some support from the falling brent crude prices that hit USD 91 per barrel today, (lowest since June 2012), but may not go in for a full deregulation just yet. The government is keen on keeping a ‘small cushion’ if crude prices were to rise globally.

The government is keen to position the small price cut as a Diwali gift for the public.

Oil marketing companies have seen a profit of Rs 1.90 per litre in the September16-October 1 fortnight, but the government is not likely to pass on the full benefit.

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