Reuters

New Delhi, Nov 25: The government may cut fuel prices towards the end of December as the code of conduct for ongoing assembly elections bars potentially vote-winning policy moves, petroleum minister Murli Deora said on Tuesday.

The government would be unable to do so before that because of the Election Commission's code of conduct for ongoing assembly elections in a handful of states, officials say.

Crude oil has fallen from its July peak of $147 a barrel to $54 on Tuesday, but fuel prices have not been cut in India, unlike Malaysia, which last week announced a fifth cut in prices.

"Crude oil has fallen. We should reduce prices but we cannot do it before December 24 because of the code of conduct," Deora told reporters.

Oil secretary RS Pandey said his ministry would send a proposal for price cuts and related subsidy issues to the Cabinet before December 24.

Voters will go to the polls in a handful of states over the next few weeks.

Government raised fuel prices by about 10% in early June and has continued to sell petrol and diesel at the same price since then.

State-run firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have resisted moves to cut fuel prices arguing they need to make up for losses incurred earlier as crude rates soared.