Oil Prices To Go Down? Here's What Industry Sources Are Saying

New Delhi: In a move aimed at providing relief to consumers nationwide, the Central government is contemplating a significant reduction in petrol and diesel prices. This anticipated step is expected to precede the upcoming 2024 Lok Sabha elections scheduled for April and May.

The current dip in international crude oil prices is a key factor influencing the decision to cut fuel prices in India. The Union Finance Ministry is reportedly set to implement the price reduction shortly, according to a report by News18. (Also Read: What Is UPI Tap And Pay? Check Benefits And How It Works?)

Speculations suggest that both petrol and diesel prices may witness a substantial decrease, with a potential cut of Rs 10. This initiative comes nearly two years after the government had previously reduced petrol and diesel prices by adjusting the Central Excise Policy by Rs 8 and Rs 6, respectively. (Also Read: Ratan Tata Turns 86 On Dec 28: Check His Net Worth, Car Collections, And More)

As of now, petrol and diesel prices in Delhi stand at Rs 96.71 and Rs 89.62, respectively. However, in major cities like Mumbai and Bengaluru, fuel prices have exceeded Rs 100.

The surge in petrol and diesel prices, crossing the Rs 110 mark in several metro cities, was largely attributed to market fluctuations triggered by the Covid-19 pandemic and the Russia-Ukraine conflict, leading to an increase in crude oil prices.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, acknowledged the Modi government's role in the declining oil prices in India. He highlighted that while petrol prices rose by 70-80 percent in North American countries, India experienced a 5 percent reduction in rates.

The international crude oil prices currently hover between $70 to $80 per barrel, prompting a proposal to cut fuel prices that has been sent to the Prime Minister's Office, as per the News18 report.

The drop in global crude oil prices has resulted in significant profits for India's three major government-run oil companies – Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL).