The Central government has announced a reduction of Rs 2 per litre in petrol and diesel prices, aligning with expectations as the Lok Sabha elections draw near. This move comes following recent cuts in liquefied petroleum gas (LPG) and compressed natural gas (CNG) prices, prompting speculation about potential relief for consumers.
Minister Puri Commends Prime Minister Modi’s Decision
Petroleum Minister Hardeep Singh Puri praised Prime Minister Narendra Modi‘s decision, emphasizing the government’s commitment to the welfare of millions of Indians. He highlighted PM Modi’s consistent efforts to ease the financial burden on citizens, particularly amid challenges such as the ongoing oil crisis.
Steady Decline in Petrol Prices Over Time
Minister Puri noted that despite turbulence in the global oil market, petrol prices in India have decreased by 4.65% over the past two and a half years. As of March 14, the average price of petrol stood at Rs 94 per litre, with diesel priced at Rs 87 per litre, providing much-needed relief to consumers.
Continued Efforts to Ensure Affordability
This reduction follows Prime Minister Narendra Modi’s recent announcement of a Rs 100 per cylinder reduction in cooking gas prices on International Women’s Day. This move is expected to benefit approximately 33 crore households reliant on LPG for cooking, showcasing the government’s commitment to ensuring affordability across essential commodities.
Navigating Challenges in the Global Energy Market
Minister Puri acknowledged the complexities involved in adjusting retail prices of petrol and diesel. He stressed the need for careful consideration by public sector oil marketing companies (OMCs), given factors such as geopolitical challenges, global energy market volatility, and the financial health of these companies.
OMCs Address Profitability Concerns
While OMCs are making progress towards profitability, Minister Puri highlighted ongoing challenges, particularly concerning under-recoveries on diesel sales. This underscores the delicate balance required in managing fuel prices amidst evolving market dynamics.
