Petrol, diesel to be cheaper by Rs 2 per litre in first price cut since May 2022

Mar14,2024



New Delhi: State-run fuel retailer announced one on Thursday Shortage Prices have increased by Rs 2 per liter petrol And diesel From Friday, there was the first cut in motor fuel rates in almost two years.
This announcement has been made barely a day or two before the Model Code of Conduct is expected to come into force with the announcement of Lok Sabha elections.
This cut follows recent cuts in the prices of CNG (compressed natural gas) and LPG or liquefied natural gas, supplied as cooking fuel to households.
Oil Minister Hardeep Singh Puri said on microblogging site X, “By cutting petrol and diesel prices by Rs 2, Prime Minister Narendra Modi has once again proved that the welfare and convenience of the families of crores of Indians is always his goal “
In a separate post on X, the oil ministry said the latest cuts 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 have remained stable since May 22, 2022, when the Center last reduced excise duty. this was the second Excise duty The cut will be made over seven months, following a similar move on November 4, 2021.
Both the cuts together had reduced excise duty on petrol and diesel by Rs 13 and Rs 16 per liter respectively. After the second duty cut, BJP-ruled states also implemented similar cuts in VAT to cushion the impact oil prices Prices rose above $100 a barrel after the Ukraine conflict.
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 May 2022, even though petrol and diesel had become unprofitable and profitable propositions for various periods in between.
The ministry said lower fuel prices would lead to “higher disposable income, boost tourism and travel industries, control inflation, increase consumer confidence and spending, reduce spending for businesses dependent on transport, logistics, manufacturing and retail sectors.” Profitability will increase.” Apart from this, it will also reduce the expenses on tractor operation and pump sets for the farmers.
Last week, CNG prices were cut by Rs 2.50 per kg by city gas operators across the country. Following this, the government increased the subsidy on LPG supplied under the Ujjwala scheme to poor families and reduced the refill price by Rs 100 for general category consumers.



Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *