The government on Wednesday announced further reduction in petrol and diesel prices by Rs 5 and Re 2 a litre, respectively. In second round of cuts in as many months, the domestic LPG rate was also brought down by as much as Rs 25 per cylinder.
The reduction, which will be effective from midnight Wednesday, will help further ease inflationary pressures and benefit common man.

Petroleum Secretary R S Pandey said no decision on raising excise and customs duty to mop up any extra revenue has been taken. Also, the parallel proposal of freeing petrol and diesel prices from administrative control has not been acted upon.
"The Government," he said, "will made good all of the losses of state-run retailers after accounting for Rs 32,000 crore contribution from upstream firms, through issue of oil bonds."
Deora said, "This is the first time the retail selling price has gone down below the rates in June 2006. There is no inflationary impact at all because of fuel now." Petrol on June 6, 2006 was priced at Rs 47.51 a litre in Delhi, diesel at Rs 32.47 and domestic LPG at Rs 294.75.
"After reduction, petrol in Delhi will cost Rs 40.62 a litre, diesel Rs 30.86 and domestic LPG Rs 279.70 per cylinder," he said.