M A I N   N E W S

Petrol, diesel to cost less
Tribune News Service

New Delhi, November 28
The government tonight decided to reduce petrol and diesel prices. However, a formal announcement in this regard is expected tomorrow in Parliament. Sources indicated that petrol and diesel retail prices could be reduced by Rs 2 and Rs 1, respectively.

The quantum of the price cut was decided during a meeting between Petroleum and Natural Gas Minister Murli Deora and Prime Minister Manmohan Singh, which was also attended by Finance Minister P. Chidambaram. The government had hiked petrol price by Rs 4 and diesel by Rs 2 per litre in June.

During the day, the government issued the second tranche of special bonds worth Rs 5,000 crore to oil marketing companies to help them offset losses due to high international crude prices.

The process of reduction in petrol and diesel prices gained momentum after the UPA chairperson Sonia Gandhi in the morning hinted at the possibility of lowering the prices of some petroleum products.