Centre may cut petrol, diesel prices by Rs 3-5/L

New Delhi: Following the recent cut in domestic LPG prices, the Central government may cut petrol, diesel price by Rs3-5 a litre around Diwali given that key state elections start from November-December, JM Financial Institutional Securities said in a report.

Last week, the government cut the price of the domestic 14.2kg LPG cylinder by Rs 200/LPG cylinder for all 330 million consumers w.e.f. August 30. This was to give relief to the common man from the recent surge in inflation.

OMCs marketing segment earnings could come under risk if: a) Brent crude price sustains above $85/bbl; and/or b) OMCs are forced to cut petrol/diesel price in the next few months, the report said.