By After a very long wait, the government of India has finally reduced the price of petrol and diesel by Rs. 2 in India. This comes to effective from today onwards and state-owned oil marketing companies have implemented this price cut. As a result of this revision, petrol prices in Delhi have now descended to Rs. 94.72 per litre, while diesel is priced at Rs. 87.62 per litre. In Kochi, the prices stand at Rs. 105.43 and Rs. 94.43 per litre for petrol and diesel respectively. This much-awaited reduction in fuel prices, stagnant since May 2022, comes as a relief for motorists nationwide. It not only eases the burden on consumers but also reduces operational costs for a multitude of vehicles traversing the Indian terrain.
Notably, this price adjustment precedes the upcoming Lok Sabha elections slated for April-May. Furthermore, recent reductions in compressed natural gas prices by companies like Indraprastha Gas Ltd and Mahanagar Gas indicate a broader effort to address consumer concerns. India, being the world’s third-largest consumer of crude oil, relies heavily on imports for over 85% of its requirements. Consequently, the fluctuation in petrol and diesel prices is intricately linked to international benchmarks and various domestic factors such as exchange rates, freight charges, and taxation.
Despite the reduction in crude oil prices, which have dipped from over USD 100 per barrel to approximately USD 85, volatility persists due to geopolitical uncertainties and production regulations. For instance, crude prices soared to over USD 95 per barrel in September. The last revision in petrol and diesel prices dates back to May 2022 when the central government slashed excise duties on both fuels. We have been expecting this announcement for a long time and several more measures have been taken by the government to reduce pollution.
