Petrol, Diesel prices to reduce soon? Modi govt in talks with oil marketers
The Modi government plans a potential decrease in petrol and diesel prices after discussions with oil companies, aiming to ease the burden on consumers. Profits accrued by oil firms might aid in curbing the inflationary impact, aligning with the upcoming elections and reflecting a positive step for the government.
FollowAmidst widespread criticism over soaring petrol and diesel prices, the Modi government is reportedly gearing up to ease the burden on the common populace. Discussions between the Oil Marketing Company (OMC) and the central government indicate a potential decrease in fuel prices, signalling a shift in the political landscape ahead of the upcoming Lok Sabha elections.
Fuel prices remained relatively steady throughout the year, despite last year's steep rise due to soaring international crude oil rates, pushing petrol prices to over Rs 115 per litre. The government's tax adjustments and strategic pricing helped curb the escalation, although it still exceeded the Rs 100 mark. However, sources suggest an imminent substantial drop in petrol and diesel prices.
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Finance Minister Nirmala Sitharaman and Petroleum Minister Hardeep Singh Puri have engaged in discussions with oil companies regarding this development. This year, oil companies reaped profits of 8 to 10 rupees on petrol and 3 to 4 rupees on diesel, aiming to recover losses incurred over the past years, amassing a collective profit of Rs 28,000 crore, shared among entities such as IOC, HPCL, and BPCL.
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The government intends to alleviate the consumer burden by leveraging these profits, possibly curbing inflationary challenges to a reasonable extent. International crude oil prices ranging between 75 to 80 US dollars per barrel have facilitated conducive negotiations with oil companies, hinting at a favourable outcome.
The imminent reduction in petrol and diesel prices, especially with the Lok Sabha elections drawing near, signifies an initial success for the Modi government, potentially resonating positively with the populace.
