In a significant move that brings relief to the common man, the Central government has announced a fuel price cut across India. This announcement, made on March 14 via social media platform X (formerly known as Twitter), comes as good news ahead of the Lok Sabha Elections 2024.
According to the Union Ministry of Petroleum and Natural Gas, OMCs have been directed to implement the revised prices nationwide. This marks the first reduction in fuel prices since May 2022. Petrol and diesel prices in India are updated daily at 6am, a practice that started in June 2017.
Today's Petrol and Diesel Price Updates
The rates have seen varied changes across the country. In Maharashtra, petrol prices dropped by 42 paise and diesel by 40 paise. Uttar Pradesh saw a decrease of 21 paise for both fuels. Rajasthan reported a 17 paise reduction, while prices in Bihar and Madhya Pradesh went up slightly.
Chhattisgarh experienced the most significant drop, with petrol and diesel prices decreasing by 50 and 49 paise, respectively. The latest revision brings the price of petrol in Delhi to Rs 94.72 per litre and diesel to Rs 87.62 per litre.
Other major cities also saw changes, with petrol now costing Rs 104.21 per litre in Mumbai, Rs 103.94 in Kolkata, and Rs 100.75 per litre in Chennai. On the other hand, diesel now costs Rs 92.15 per litre in Mumbai, Rs 90.76 in Kolkata, and Rs 92.34 in Chennai.
Rajasthan Govt's VAT Reduction
Rajasthan Chief Minister Bhajan Lal Sharma announced a 2% VAT reduction on petrol and diesel starting Friday. This adjustment is expected to lower fuel prices by Rs 1.40 to Rs 5.30 for petrol and Rs 1.34 to Rs 4.85 for diesel.
Factors Influencing Fuel Prices in India
Several elements determine the final retail prices of petrol and diesel in India. The cost of crude oil significantly affects fuel prices, as it's the primary raw material for their production. Furthermore, the exchange rate between the Indian rupee and the US dollar impacts costs due to India's status as a major crude oil importer.
Taxes imposed by both central and state governments, refining costs, and fluctuating demand also play crucial roles in setting fuel prices. Fuel prices have remained steady since May 2022, following a tax reduction by the central government and several states.
Adjustments to retail prices are made daily by OMCs based on global crude oil prices, under the oversight of government policies such as excise tax, base pricing, and price caps. This latest decrease in petrol and diesel prices is a welcome development for consumers across India.
Athul Drivespark
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