In a move anticipated to bring significant relief to the common citizens, the central government is reportedly planning to slash prices of petrol and diesel by a substantial margin, possibly exceeding 8 rupees per litre. This strategic decision is believed to be geared towards garnering favor with the electorate in anticipation of the upcoming Lok Sabha elections in 2024. According to credible reports from our associate website Wion, the government may unveil this relief measure before the close of the current calendar year.
Sources suggest that the Ministry of Petroleum has formulated a proposal recommending a reduction of 8 to 10 rupees per litre for both petrol and diesel. The proposal awaits the approval of the Prime Minister, and if greenlit, the announcement could be imminent. Notably, the government oil companies—Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL)—have not revised pre-refinery prices since April 6, 2022.
This prospective reduction comes on the heels of substantial profits accrued by these oil companies in the current financial year, thanks to the relatively lower prices of crude oil. Cumulatively, IOC, BPCL, and HPCL have recorded a net profit of 58,198 crore rupees in the first half of the fiscal year.
As of now, the price of one litre of petrol in the national capital, Delhi, stands at 96.72 rupees, while in Rajasthan, it is 109.34 rupees. Diesel prices are at 89.62 per litre in Delhi, 90.16 in UP, 88.57 in Punjab, and 90.16 rupees per litre in Haryana. If the proposed cut materializes, it is expected to bring substantial relief to consumers across the country.
The government’s potential initiative to ease the burden of fuel costs aligns with broader economic and political considerations, setting the stage for a pivotal development with far-reaching implications for citizens and the political landscape alike.