A cut in fule prices by the govt. is expected to be announced on 6 December. This move by the govt. of India will help to contain inflation and also allow RBI to focus on deeper policies of rate cuts
in order to give an impetus to economic growth.;
The stimulus package to be announced by govt. tomorrow is also expected to re-impose customs duty on crude oil besides announcing a cut in prices of petrol, diesel and LPG.
When the crude prices touched a record high of $147 a barrel, government had abolished the 5% customs duty on crude, this year in July.As the crude prices have fallen below $50 a barrel, Finance Ministry is
looking at reimposing the levy.
International prices of crude oil have currently come down to almost $45 a barrel.Govt., prompted by high oil prices had also increased petrol and diesel prices by Rs5 and Rs3 per litre respectively and that of LPG by Rs50 a cylinder earlier this year.
“The Petroleum Ministry has prepared a note for consideration of the Cabinet Committee on Economic Affairs and is pressing for an early meeting,” say the sources.
