Are Fuel Prices Set to Plummet? Centre Plans Heavy Petrol and Diesel Price Cut Before 2024 Elections
New Delhi: In a significant relief for consumers nationwide, the Central government is contemplating a substantial reduction in petrol and diesel prices. This decision is anticipated to precede the 2024 Lok Sabha elections scheduled for April and May next year.
The current dip in international crude oil prices will be a key factor influencing the reduction in fuel prices in India. The Union Finance Ministry is reportedly gearing up to implement the price cut soon, according to a report by News18.
There are indications that both petrol and diesel prices may witness a reduction of ₹10. This move comes nearly two years after the Centre had previously decided to cut petrol and diesel prices by reducing the Central Excise Policy by ₹8 and ₹6, respectively.
As of now, the current prices of petrol and diesel in Delhi stand at ₹96.71 and ₹89.62, respectively. However, in major cities such as Mumbai and Bengaluru, fuel prices have soared above ₹100.
The surge in petrol and diesel prices, surpassing the ₹110 mark in various metro cities across India, was primarily attributed to market fluctuations caused by the Covid-19 pandemic and the Russia-Ukraine war, resulting in a spike in crude oil prices.
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, previously attributed the drop in oil prices in India to the Modi government. He highlighted that while petrol prices witnessed a 70-80 percent increase in North American countries, India experienced a 5 percent reduction in rates.
Currently, international crude oil prices are trading in the range of $70 to $80 per barrel. This has prompted a proposal to be submitted to the Prime Minister’s Office advocating for a reduction in fuel prices, as reported by News18.
The decline in international crude oil prices has led to significant profits for the three major government-run oil companies in India—Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL).
