NEW DELHI: State oil firms will cut petrol prices by about Rs1.25 per litre just before the first round of voting, but diesel will be costlier by 50 paise as bureaucrats have decided not to interrupt the Cabinet-approved plan to raise its price every month unless the Election Commission (EC) allows this, government and industry officials said. “EC did not allow raising gas price from April 1, although it was a non popular decision that would have a negative impact on the incumbent government.Deferment of diesel price increase is certainly a popular move, which EC may not allow,” said another government official with direct knowledge of the matter. EC would interpret the move of postponing the routine diesel price hike as appeasement of voters, which is in violation of the model code of conduct, officials said. Petrol prices are set by state run firms although they informally consult the oil ministry before taking a decision. Diesel prices are fixed by the Cabinet.“The routine hike of diesel price by 50 paise per month is a Cabinet decision that can be deferred only by the Cabinet. But, the Cabinet secretariat will not entertain any proposal for the Cabinet, without the approval of EC,” a senior government official said requesting anonymity.Last year in January,the Cabinet gave limited freedom to state oil marketing firms to raise diesel prices in small doses not exceeding 50 paise without local levies every month until pump prices are aligned with market rates. Oil firms’ revenue losses on sale of diesel have now dropped by Rs1.21 per litre at Rs7.16. But under the current scenario, at least 14 months are required to achieve the market parity, an Indian Oil executive said. Government officials said petrol is a deregulated product and oil companies would not require EC’s approval if they want to reduce the fuel price.Senior executives of oil marketing companies have said that petrol prices could be slashed by the end of this month because international oil prices have softened and the rupee has appreciated against the dollar. “We will take a decision after considering the average international gasoline prices and exchange rates. Still four-five days are left before we will conduct the fortnightly review of petrol prices. As of now, the trend shows that petrol prices could be reduced by Rs1.25 per litre. It could be more if this trend continue still the end of this week,” an IOC executive said.Executives in IOC, BPCL and HPCL said oil companies had an option to slash petrol price by about 25 paise in the last pricing cycle, around March 15, but they postponed the decision to pass on the benefit to consumers because the margin was very small. This would prompt them to slash gasoline rates substantially.