In a significant move, Petroleum and Natural Gas Minister Hardeep Singh Puri has announced a reduction in petrol and diesel prices, bringing relief to the common people just before the upcoming Lok Sabha elections. Effective from 6 am on Friday, the prices will see a decline of Rs 2 per liter nationwide. This reduction comes alongside certain states also lowering VAT rates on fuel, resulting in a cumulative decrease of Rs 5-5 per liter in selected regions.
New Prices and Implications
Following the adjustments by petroleum companies, petrol prices in Delhi will now stand at Rs 94.72 per liter, a decrease from the previous Rs 96.72 per liter. Similarly, in Mumbai, Kolkata, and Chennai, prices will be Rs 104.21, Rs 103.94, and Rs 100.75 per liter, respectively. Diesel prices have also seen a decrease, with rates in Delhi, Mumbai, Kolkata, and Chennai now at Rs 87.62, Rs 92.15, Rs 90.76, and Rs 92.34 per liter, respectively.
This reduction is anticipated to stimulate consumption and mitigate inflationary pressures. The Ministry of Petroleum emphasizes that the move will particularly benefit the heavy vehicle sector, with approximately 58 lakh vehicles relying on diesel, alongside 6 crore cars and 27 crore two-wheelers running on petrol across the nation.
State-Specific Adjustments
In Rajasthan, the government led by Chief Minister Bhajan Lal Sharma has slashed VAT rates on fuel by 2 percent. Consequently, petrol prices are set to decrease by Rs 1.40 to Rs 5.30 per liter, while diesel prices will witness a decline ranging from Rs 1.34 to Rs 4.85 per liter across different regions. This decision, however, entails a financial burden of Rs 1500 crore on the state exchequer. To offset this, the government has also approved a 4 percent increase in the dearness allowance for state employees.
Similarly, in Chandigarh, petrol prices have dropped from Rs 96.20 to Rs 94.20 per liter, and diesel prices from Rs 84.26 to Rs 82.26 per liter.
Government’s Perspective
Minister Puri, in a tweet, highlighted the historical context of fuel availability in India, underscoring Prime Minister Narendra Modi’s foresight in navigating global challenges. Despite significant oil price hikes globally, India has managed to maintain stability in petrol prices, showcasing a decrease of 4.65 percent over the past two and a half years.
Conclusion
The reduction in petrol and diesel prices ahead of the Lok Sabha elections comes as a relief to citizens grappling with rising living costs. As the government focuses on economic stability and public welfare, this move is expected to alleviate financial burdens on individuals and spur economic activity. With state governments also taking steps to ease fuel prices, the overall impact is poised to positively influence consumer sentiment and mitigate inflationary pressures, providing a favorable backdrop for the forthcoming elections.
