Will Petrol, Diesel Prices Be Slashed Ahead Of Big Polls?

With an eye on the 2024 Lok Sabha polls, the BJP-led NDA government announced a Rs 200 per cylinder cut in prices of domestic cooking gas to soften the impact of rising inflation on households as well as counter the promise of cheaper LPG made by the Congress party in upcoming assembly elections.

A 14.2-kg LPG cylinder, which was sold at Rs 1,103, is priced at Rs 903. For Ujjwala beneficiaries, the price will be Rs 703 after considering the continuing Rs 200 per cylinder subsidy.

On his government's decision to reduce the prices, Prime Minister Narendra Modi said the festival of Raksha Bandhan is a day to enhance happiness in the family and the decision to cut prices will greatly help women.

"Every sister of mine should remain happy and healthy, that is my wish from the God," he said in a post on X, formerly known as Twitter.

Now, all eyes are on whether the Centre will slash the price of petrol and diesel which have remained unchanged for over a year now. With five states including Rajasthan, MP and Telangana going for polls in a few months, it would not be a surprise if the Centre reduces the price on fuel, Economic Times reported citing economists.

Even Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri batted for a reduction in petrol and diesel prices across India.

In an interview with CNBC, he said that substantial decreases in oil prices were effectively carried out in both 2021 and 2022, providing essential relief to consumers.

To alleviate the economic strain on consumers, the central government implemented significant measures by reducing excise taxes on petrol and diesel. These reductions amounted to Rs 5 per litre for petrol and Rs 10 per litre for diesel, commencing on November 4, 2021. Furthermore, on May 22, 2022, the central government took additional steps to lower excise taxes, resulting in a reduction of Rs 8 per litre for petrol and Rs 6 per litre for diesel.