India hopes to see a petrol & diesel price cut after a crude cost drop last week

Petrol and diesel prices in India have not changed since May 2022, which means for 18 months, the prices of motor fuels have remained static across the country. This comes as the longest price freeze for both fuels in the country. With the central government netting buoyant tax revenue and mostly calm crude oil prices across the world, a parliamentary election coming in 2024 is fuelling the hope of a price cut for petrol and diesel in the near future. Prime Minister Narendra Modi's promise to review fuel prices in Rajasthan on Monday has reignited the discussion around the possibility of a price cut for motor fuels.

Fuelling the consumers' hope further is the benign global crude oil prices. The crude oil prices have been declining steadily over the last few weeks and recorded a four-month low on November 16 The US WTI benchmark fell $3.06 to $72.90 a barrel on November 16. The Brent too tumbled $3.02 or 3.72 per cent to $77.72 per barrel amid demand worries. This has propelled the hope among consumers that the oil marketing companies in India such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation may reduce fuel prices soon.

A few months back, India’s petroleum minister Hardeep Singh Puri too indicated that he government may announce a price cut for petrol and diesel shortly. The minister said that he will push for a cut in petrol and diesel prices. With all the above factors at play including the reduction of crude oil prices in the international market, the upcoming election may bring in a price cut for fuels, which would result in a breather for consumers across the country.

Petrol prices in India are currently at a sky-high level. In many cities across the country, petrol prices are currently well above the ₹100 mark, while diesel prices too are at a high level.