Government oil marketing companies in India have reduced the prices of petrol and diesel by two rupees, providing relief to the common people. This reduction comes after almost 22 months of stable prices for petroleum products. The decision is believed to be influenced by the upcoming announcement of general election dates. In May 2022, petrol and diesel prices were last changed. The outbreak of the Russia-Ukraine war had caused the international price of crude oil to exceed $100 per barrel. However, the Central Government had previously reduced excise duty to alleviate the burden on the public.
According to a report by rating agency ICRA, government oil marketing companies have been making profits on petrol and diesel. In January 2024, the profit margin per liter was Rs 11 for petrol and Rs 6 for diesel. The situation for oil companies had not been favorable before September 2023, but margins have improved since then. Pressure was mounting on the companies to reduce prices, as they had already compensated for their losses and become profitable. Experts suggest that even with the softening of crude oil prices, the companies did not lower prices until now.
In a significant move that promises widespread relief, the Petroleum Ministry has announced a notable reduction in petrol and diesel prices across India, set to take effect from Friday, March 15. This price revision, confirmed by Oil Marketing Companies (OMCs), marks the first such adjustment by state-owned oil entities in almost two years.
Key Details of the Fuel Price Cut:
- Effective Date and Time: The revised prices for petrol and diesel will be enforced from 6:00 AM on March 15, providing immediate financial relief to consumers.
- Impact on Consumers: The reduction is expected to decrease the everyday fuel expenses for millions, thereby lowering the operating costs for a vast array of vehicles including heavy goods vehicles, cars, and two-wheelers.
- Economic Implications: This price cut is anticipated to stimulate consumer spending and reduce the financial burden on sectors reliant on fuel, potentially contributing to broader economic benefits.
Updated Fuel Prices in Major Cities:
Below is the comparative list of the new and old petrol and diesel prices in four major Indian cities:
Delhi:
- Petrol: New Price – Rs 94.72/litre | Old Price – Rs 96.72/litre
- Diesel: New Price – Rs 87.62/litre | Old Price – Rs 89.62/litre
Mumbai:
- Petrol: New Price – Rs 104.21/litre | Old Price – Rs 106.31/litre
- Diesel: New Price – Rs 92.15/litre | Old Price – Rs 94.27/litre
Kolkata:
- Petrol: New Price – Rs 103.94/litre | Old Price – Rs 106.03/litre
- Diesel: New Price – Rs 90.76/litre | Old Price – Rs 92.76/litre
Chennai:
- Petrol: New Price – Rs 100.75/litre | Old Price – Rs 102.63/litre
- Diesel: New Price – Rs 92.34/litre | Old Price – Rs 94.24/litre
These adjustments in fuel prices are poised to offer considerable savings to the public and are likely to be warmly welcomed by the populace, especially those relying heavily on fuel for their daily commutes and operations. The Ministry of Petroleum and Natural Gas has emphasized the positive ripple effects this reduction will have on the economy, notably in enhancing consumer spending capacity and alleviating the cost pressures on transport and logistics sectors, thereby benefiting over 58 lakh heavy goods vehicles, 6 crore cars, and 27 crore two-wheelers across the nation.
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