Cut in fuel prices will boost consumer spending: Oil minister | India News

Mar14,2024


New Delhi: Government run fuel retailer On Thursday, the prices of petrol and diesel were cut by Rs 2 per liter. In a separate post on X, the oil ministry said the latest Shortage “Will boost consumer spending and reduce operating costs for over 58 lakh heavy goods vehicles, 6 crore cars and 27 crore two-wheelers running on diesel”. petrol and diesel prices Frozen since May 22, 2022, when the Center last reduced excise duty on them. This was the second excise duty cut in seven months, following a similar move on November 4, 2021.

Both the cuts had reduced excise duty on petrol and diesel prices by Rs 13 and Rs 16 per liter respectively. Following the second duty cut, BJP-ruled states also implemented similar cuts in VAT to cushion the impact of global oil prices.

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Technically, fuel retailers are free to decide the retail prices of petrol and diesel. But in practice, the government informally casts a long shadow. The recent fall in oil prices has made petrol and diesel profitable for retailers, but they were waiting for a signal. Thus, prices have remained stable since the last cut in 2022, even though fuel has become a loss-making and profitable deal several times in between.



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