The government can soon give the gift of a reduction in the price of petrol and diesel to consumers.s. After the fall in the prices of crude oil on the global market, the margins of petroleum companies have also increased and now they are making profits instead of losses. In view of this, the government can soon cut the price of petrol and diesel by up to Rs 2 per liter.
According to the report of Times of India, if the prices of petrol and diesel come down, it will be the first reduction in oil prices after May 2022. In May, the government reduced the excise duty on both fuels.
Then the government reduced the excise duty on petrol by Rs 8 per liter and on diesel by Rs 6 per liter. Government oil companies have once again started getting big margins in the prices of petrol and diesel. According to the report, companies are getting a margin of up to Rs 6 a liter on petrol and up to Rs 10 a liter on diesel.
Sources related to the matter say that if the Indian rupee and crude oil prices remain at the current level, then the government can cut the prices of petrol and diesel by Rs 2 per liter.
Before taking any decision, one must look at how much further the prices of crude oil can fluctuate on the global market. At present, its prices are much lower than they were during the time of the Russia-Ukraine war.
The government on Tuesday reduced the windfall tax, that is, the share of companies’ profits, indicating that the pressure on oil prices in the domestic market is now easing.
If the government cuts petrol and diesel by Rs 2 per liter, then not only will the public get relief from inflation, but the ruling party will also get political benefits during the elections to be held in many states including Himachal Pradesh and the opposition’s allegations about inflation. Can also be answered.
India gets 25 per cent of its crude oil purchases from Brent crude. In such a situation, when the government reduced the excise duty in May, the price of Brent crude was $ 115 per barrel. Currently, this is running at $ 95 per barrel. Not only that, but its price shot up to $ 90 per barrel in September.
In May, statcompaniesmpanies complained about falling margins and losses. Response,The companies said that they are incurring a loss of Rs 10 per liter on petrol and Rs 14 per liter on diesel.
Not only this, Indian Oil and Bharat Petroleum had also jointly reported a loss of 19 thousand crores. However, now again these companies have returned to profit and the margin per liter on petrol and diesel has also started increasing.
