Indian Government Cuts Petrol, Diesel Prices

The Indian government has finally reduced fuel prices. Finally there is some good news. The petrol and the diesel prices are now cheaper by Rs 5 per litre and Rs 2 respectively. This in turn will further help the auto fuel consumers to save around Rs 6,000 Crore. However, Oil Marketing Companies will have to bear the loss of s 5,300 Crore due to this fuel price cut.

According to Murli Deora, Petroleum Minister, "The government is working on a formula that will support the under-recoveries of the country's three public sector Oil Marketing Companies (OMCs) Bharat Petroleum, Indian Oil and Hindustan Petroleum. These oil companies dominates the market with 95 percent of share.

The economic crunch has shaken every sector. The Indian car industry faced major problems, many manufacturers were forced to even shut down its production plant. The car sales were falling. The cut in fuel price will be a great support to every one. This will help the car manufacturer in their car sales.