Government to decide massive cut in Petrol and Diesel prices ahead of 2024 Elections: Report

As 2023 draws to a close, reports from various sources suggest that the Indian government, led by Prime Minister Narendra Modi, is gearing up to announce substantial cuts in petrol and diesel prices, potentially ranging from Rs 8 to Rs 10 per litre. With the general elections looming in the first half of 2024, the move aims to deliver a new year bonanza to the public.

Sources reveal that the Petroleum Ministry has formulated a proposal outlining the significant reductions, awaiting the Prime Minister’s approval, expected to come on Thursday. The proposal cites the sharp decline in the purchase price of imported crude oil, a key factor in the production of petrol and diesel.

The average crude oil price during the financial year 2023-24 has been $77.14 per barrel, with only two months experiencing spikes at $93.54 (September) and $90.08 (October). In contrast, the average crude oil price in 2022-23 stood at $93.15 per barrel.

Despite the decline in crude oil prices, the ex-refinery prices of petrol and diesel have remained unchanged since April 6, 2022. This has translated into significant profits for the government-run oil marketing companies – Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp – which collectively recorded a net profit of Rs 58,198 crore in the first six months of the current fiscal year.