Big Cut In Fuel Prices Likely Soon, Final Nod Awaited: Sources

A big cut in fuel prices is likely months ahead of the 2024 Lok Sabha elections.

Sources in the Union Finance Ministry confirmed to News18 that there will be a big cut in fuel prices. Prices are likely to be slashed up to Rs 10, they added.

There is a decline in the prices of crude oil in the international market.

In May 2022, the central government reduced the Central Excise Duty on petrol and diesel by Rs 8 and Rs 6 per litre, respectively.

At present, petrol in Delhi is being sold at Rs 96.72 a litre while diesel is being sold at Rs 89.62 a litre. Whereas in Mumbai, petrol is available at Rs 106.31 and diesel at Rs 94.27 per litre.

The decisive steps taken by the Modi government shielded common citizens from global oil price volatility, according to the response to an unstarred question in the Rajya Sabha.

The data from October 2021 to October 2023 shows the percentage change in diesel prices in major and neighbouring countries. Barring India, which saw a 1% point drop, most countries saw a rise. For instance, the rise in percentage points was witnessed in Sri Lanka (118), Pakistan (73), Nepal (53) and Bangladesh (45). The surge was seen even in the US (39), Canada (31), Spain (25), France (24), Italy (22), Germany (21) and the UK (13).

The drop in case of petrol price change was sharper in India at 5% points, whereas most countries saw a rise. The data for the same period shows the percentage point rise in Pakistan at 70, Sri Lanka at 60, Nepal at 40 and Bangladesh at 26. Other major economies too registered a percentage rise – the US (22), Spain (16), France (15), the UK (10) and Canada at 8.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri recently said that the oil prices in the country came down because of the Modi government’s measures. “Worldwide the prices went up around India by 70-80%, in North America by 40-50%, India prices came down by 5% that’s because of the decisive steps PM Modi has taken,” he said.

Speaking at the CNN-News18 Town Hall in Delhi in June, he had said, “Price rise is evident in opposition-ruled states. BJP-ruled states are performing better than opposition-ruled states as VAT has been reduced. We are keeping fuel prices low despite high imports.”