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Modi govt planning massive drop in petrol, diesel prices soon?

Media reports suggest that the Union Finance Ministry will soon announce a price cut, potentially reducing both petrol and diesel prices by ₹10. This move comes after a two-year hiatus since the previous adjustment in the Central Excise Policy.

Modi govt planning massive drop in petrol, diesel prices soon?
First Published Dec 29, 2023, 11:50 AM IST

In a move set to bring relief to consumers nationwide, the Central government is gearing up to implement a substantial reduction in petrol and diesel prices. This strategic decision, anticipated to precede the 2024 Lok Sabha elections scheduled for April and May next year, aims to capitalize on the current dip in international crude oil prices. A report on television channel News18 suggested that the Union Finance Ministry will soon announce the price cut, leveraging the decline in global crude oil prices.

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Speculations indicate that both petrol and diesel prices may witness a reduction of Rs 10. This development follows a nearly two-year gap since the government's previous decision to cut petrol and diesel prices by Rs 8 and Rs 6, respectively, through adjustments in the Central Excise Policy. Presently, in Delhi, the prices stand at Rs 96.71 for petrol and Rs 89.62 for diesel. However, in major cities like Mumbai and Bengaluru, fuel prices have soared beyond Rs 100, prompting this forthcoming intervention.

The surge in petrol and diesel costs, crossing the Rs 110 mark in several metro cities, was primarily attributed to market fluctuations induced by the Covid-19 pandemic and the Russia-Ukraine conflict, resulting in elevated crude oil prices.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, acknowledged the Modi government's role in mitigating oil prices in India. He emphasized that while North American countries experienced a 70-80 per cent surge in petrol prices, India witnessed a 5 per cent decrease.

With crude oil prices currently ranging between $70 to $80 per barrel in international markets, a proposal advocating fuel price reductions has been forwarded to the Prime Minister's Office, as reported by News18. Notably, the drop in international crude oil prices has translated into significant profits for India's major government-run oil companies, including Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL).

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