After LPG price cut, will petrol, diesel be the next as polls near?

India’s move to cut cooking gas prices could soften inflation and shift focus toward a reduction in gasoline and diesel prices ahead of some major festivals and key elections, according to Citigroup Inc.

The government’s decision to reduce liquefied petroleum gas could lower inflation by around 30 basis points, economists Samiran Chakraborty and Baqar M. Zaidi said in a note Wednesday. The latest action, along with a drop in tomato prices, raises the possibility of inflation falling below 6% in September, they said.