Karela Fry

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Second step: rollback

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The Hindu reports that the second step of a predicted three step strategy to contain the budget deficit has been put into place:

Aided by the falling international crude prices, the oil marketing companies on Saturday announced a cut of Rs. 2.02 a litre in petrol prices. The reduction came into effect on Saturday night.

Petrol will now cost Rs.71.16 in Delhi. In Mumbai, the cost will come down by Rs.2.12, to Rs.76.45. In Kolkata, it has come down from Rs.77.88 to Rs.75.81, a reduction of Rs.2.07. In Chennai, it will be Rs.75.40, down by Rs.2.13.

The decision to cut the prices was taken after a fortnightly review meeting of the oil companies. On May 24, the oil companies jacked up the prices, in the steepest ever increase, by Rs.7.54 a litre, bringing sharp criticism to the ruling United Progressive Alliance (UPA) ā€” even from its allies ā€” and prompting the Opposition parties to call a nationwide bandh for May 31.

Step one was to increase the petrol prices hugely; step two was to roll that back partially. The final step will be to let the kerosene and natural gas (perhaps the diesel) prices to rise somewhat.

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Written by Arhopala Bazaloides

June 2, 2012 at 6:11 pm

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