In a significant development, the Centre is contemplating a substantial reduction in petrol and diesel prices, providing relief to consumers nationwide. This move is anticipated to precede the 2024 Lok Sabha elections scheduled for April and May next year.
The Union Finance Ministry, awaiting final approval, plans to implement the price cut considering the current decline in international crude oil prices. According to a News18 report, the reduction may amount to ₹10 for both petrol and diesel. This decision follows a previous cut in Central Excise Policy, reducing petrol and diesel prices by ₹8 and ₹6, respectively, almost two years ago.
Presently, petrol and diesel prices in Delhi stand at ₹96.71 and ₹89.62, respectively. However, several major cities, including Mumbai and Bengaluru, witness fuel prices exceeding ₹100.
The drop in crude oil prices globally, ranging between $70 to $80 per barrel, has prompted a proposal to the Prime Minister’s Office advocating for a reduction in fuel prices. The three major government-run oil companies in India—Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL)—have reported substantial profits due to the prevailing international crude oil price decline.
As the government aims to ease the burden on consumers, this potential fuel price cut aligns with broader economic considerations and geopolitical factors, setting the stage for a crucial policy move ahead of the upcoming elections.
