Ahead of the Lok Sabha election schedule announcement, the government implemented a Rs 2 per litre reduction in petrol and diesel prices on Thursday (March 14).

Speculation had been circulating following recent cuts in liquefied petroleum gas (LPG) and compressed natural gas (CNG) prices, suggesting that a decrease in petrol and diesel prices might be on the horizon due to the impending Lok Sabha polls.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/videos/pm-narendra-modi-announces-reduction-in-lpg-cylinder-price-on-the-occasion-of-womens-day-697975" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/videos/pm-narendra-modi-announces-reduction-in-lpg-cylinder-price-on-the-occasion-of-womens-day-697975&amp;sa=U&amp;ved=2ahUKEwiBs_Gfk_SEAxUBZmwGHdxdCbYQFnoECAMQAg&amp;usg=AOvVaw3lcg9rjYvfohKrZCDTxlT5&amp;arm=e" dir="ltr" href="https://www.wionews.com/videos/pm-narendra-modi-announces-reduction-in-lpg-cylinder-price-on-the-occasion-of-womens-day-697975" target="_blank">PM Narendra Modi announces reduction in&nbsp;LPG&nbsp;cylinder price</a>

In a statement on X, Petroleum Minister Hardeep Singh Puri remarked, "With the Rs 2 reduction in petrol and diesel prices, Prime Minister Narendra Modi has reaffirmed his commitment to the well-being and convenience of millions of Indian citizens."

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पेट्रोल और डीज़ल के दाम ₹2 रुपये कम करके देश के यशस्वी प्रधानमंत्री श्री <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a> जी ने एक बार फिर साबित कर दिया कि करोड़ों भारतीयों के अपने परिवार का हित और सुविधा सदैव उनका लक्ष्य है। 
 
वसुधा का नेता कौन हुआ? 
भूखण्ड-विजेता कौन हुआ? 
अतुलित यश क्रेता कौन हुआ? 
नव-धर्म… <a href="https://t.co/WFqoTFnntd">https://t.co/WFqoTFnntd</a> <a href="https://t.co/vOh9QcY26C">pic.twitter.com/vOh9QcY26C</a>
— Hardeep Singh Puri (मोदी का परिवार) (@HardeepSPuri) <a href="https://twitter.com/HardeepSPuri/status/1768304332112601299?ref_src=twsrc%5Etfw">March 14, 2024</a></blockquote>
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On an average, the minister reported that the average price of petrol stood at Rs 94 per litre, while diesel was priced at Rs 87 per litre.

The Ministry announced that the new prices would come into effect from 6 a.m. local time on Friday, emphasising that the reduced prices would aid in curbing inflation and boosting consumer confidence and spending.

"The reduction in petrol and diesel prices will stimulate consumer spending and reduce operating expenses for over 5.8 million heavy goods vehicles fueled by diesel, as well as for 60 million cars and 270 million two-wheelers," stated the ministry.

The magnitude of price reductions will vary across cities due to local taxes.

In February, India witnessed a faster-than-expected increase in annual retail inflation primarily due to elevated food prices.

Although annual retail inflation dipped slightly to 5.09 per cent&nbsp;in February from 5.10 per cent&nbsp;in January, it exceeded the 5.02 per cent&nbsp;forecast by a Reuters poll of 42 economists.

Earlier this month, India announced a 100 rupee reduction in the cost of a cooking gas cylinder, a move perceived as targeting female voters.

Earlier on International Women’s Day, Prime Minister Narendra Modi&nbsp;announced a reduction of Rs 100 in&nbsp;cooking gas prices, benefiting nearly 33 crore households reliant on liquefied petroleum gas (LPG).

Petroleum Minister Hardeep Singh Puri had previously stated that any reduction in retail prices of petrol and diesel would require careful consideration by public sector oil marketing companies (OMCs) due to global energy market volatility, geopolitical challenges, and the financial condition of these companies.

Opinion polls indicate a comfortable victory for Prime Minister Narendra Modi's&nbsp;Bharatiya Janata Party and its allies in the upcoming lower house parliamentary elections.

(With inputs from agencies)

Ahead of the Lok Sabha election schedule announcement, the government implemented a Rs 2 per litre reduction in petrol and diesel prices on Thursday (March 14). Speculation had been circulating following recent cuts in liquefied petroleum gas (LPG) and compressed natural gas (CNG) prices, suggesting that a decrease in petrol and diesel prices might be on the horizon due to the impending Lok Sabha polls.

Ahead of the Lok Sabha election schedule announcement, the government implemented a Rs 2 per litre reduction in petrol and diesel prices on Thursday (March 14). Speculation had been circulating following recent cuts in liquefied petroleum gas (LPG) and compressed natural gas (CNG) prices, suggesting that a decrease in petrol and diesel prices might be on the horizon due to the impending Lok Sabha polls. Also read: PM Narendra Modi announces reduction in LPG cylinder price In a statement on X, Petroleum Minister Hardeep Singh Puri remarked, "With the Rs 2 reduction in petrol and diesel prices, Prime Minister Narendra Modi has reaffirmed his commitment to the well-being and convenience of millions of Indian citizens." पेट्रोल और डीज़ल के दाम ₹2 रुपये कम करके देश के यशस्वी प्रधानमंत्री श्री @narendramodi जी ने एक बार फिर साबित कर दिया कि करोड़ों भारतीयों के अपने परिवार का हित और सुविधा सदैव उनका लक्ष्य है। वसुधा का नेता कौन हुआ? भूखण्ड-विजेता कौन हुआ? अतुलित यश क्रेता कौन हुआ? नव-धर्म… https://t.co/WFqoTFnntd pic.twitter.com/vOh9QcY26C — Hardeep Singh Puri (मोदी का परिवार) (@HardeepSPuri) March 14, 2024 × On an average, the minister reported that the average price of petrol stood at Rs 94 per litre, while diesel was priced at Rs 87 per litre. The Ministry announced that the new prices would come into effect from 6 a.m. local time on Friday, emphasising that the reduced prices would aid in curbing inflation and boosting consumer confidence and spending. "The reduction in petrol and diesel prices will stimulate consumer spending and reduce operating expenses for over 5.8 million heavy goods vehicles fueled by diesel, as well as for 60 million cars and 270 million two-wheelers," stated the ministry. The magnitude of price reductions will vary across cities due to local taxes. In February, India witnessed a faster-than-expected increase in annual retail inflation primarily due to elevated food prices. Although annual retail inflation dipped slightly to 5.09 per cent in February from 5.10 per cent in January, it exceeded the 5.02 per cent forecast by a Reuters poll of 42 economists. Earlier this month, India announced a 100 rupee reduction in the cost of a cooking gas cylinder, a move perceived as targeting female voters. Earlier on International Women’s Day, Prime Minister Narendra Modi announced a reduction of Rs 100 in cooking gas prices, benefiting nearly 33 crore households reliant on liquefied petroleum gas (LPG). Petroleum Minister Hardeep Singh Puri had previously stated that any reduction in retail prices of petrol and diesel would require careful consideration by public sector oil marketing companies (OMCs) due to global energy market volatility, geopolitical challenges, and the financial condition of these companies. Opinion polls indicate a comfortable victory for Prime Minister Narendra Modi's Bharatiya Janata Party and its allies in the upcoming lower house parliamentary elections. (With inputs from agencies)

Indian government slashes petrol, diesel prices by Rs 2 per litre

States can cut petrol price by Rs 2.65 per litre and diesel by Rs 2 a litre if they decide to forego potential additional gains out of high crude oil rates, an SBI report said today.

"Our analysis shows that at the current crude prices and extending our analysis to 19 states (overall consumption share is 93 per cent), the states could have gained at least an additional Rs 18,728 crore of revenue (in 2018-19)," said SBI's Ecowrap report.

It further said that states earn an additional revenue of Rs 2,675 crore over and above the budget estimates for every USD 1/barrel increase in oil prices.

"Given that these revenue if foregone will not impact states fiscal position, we estimate that on an average, states can cut petrol prices by Rs 2.65/litre and diesel by Rs 2/litre, if the entire revenue gain was to be neutralised. This is the most plausible scenario under the current circumstances," the report said.

It also said that one suggestion to further rationalise the petrol and diesel prices is to consider a pricing mechanism where VAT is imposed on base price only by states and not on prices inclusive of the Centre's tax.&nbsp

If this was the case, diesel prices could further reduce by Rs 3.75 a litre and petrol prices by Rs 5.75 per litre, it said. 
&nbsp 
"However, if this was to happen, the state will have to forego Rs 34,627 crore of tax revenue / 0.2 per cent of consolidated fiscal deficit of states," said Ecowrap.

On the other hand, if the Centre cuts the excise by Re 1, the loss of revenue will be to the tune of Rs 10,725 crore for every Re 1 cut in central excise and the amount will become twice if it cuts the excise duty by Rs 2.&nbsp

This will push up the deficit of Centre, unlike states, it added.

Petrol price has been hiked by Rs 3.64 a litre and diesel by Rs 3.24 in Delhi since state-owned oil firms ended a 19-day pre-Karnataka poll hiatus to resume daily price revision on May 14. The prices are at an all-time high.&nbsp

 
&nbsp

States can cut petrol price by Rs 2.65 per litre and diesel by Rs 2 a litre if they decide to forego potential additional gains out of high crude oil rates, an SBI report said

States can cut petrol price by Rs 2.65 per litre and diesel by Rs 2 a litre if they decide to forego potential additional gains out of high crude oil rates, an SBI report said today. "Our analysis shows that at the current crude prices and extending our analysis to 19 states (overall consumption share is 93 per cent), the states could have gained at least an additional Rs 18,728 crore of revenue (in 2018-19)," said SBI's Ecowrap report. It further said that states earn an additional revenue of Rs 2,675 crore over and above the budget estimates for every USD 1/barrel increase in oil prices. "Given that these revenue if foregone will not impact states fiscal position, we estimate that on an average, states can cut petrol prices by Rs 2.65/litre and diesel by Rs 2/litre, if the entire revenue gain was to be neutralised. This is the most plausible scenario under the current circumstances," the report said. It also said that one suggestion to further rationalise the petrol and diesel prices is to consider a pricing mechanism where VAT is imposed on base price only by states and not on prices inclusive of the Centre's tax. If this was the case, diesel prices could further reduce by Rs 3.75 a litre and petrol prices by Rs 5.75 per litre, it said. "However, if this was to happen, the state will have to forego Rs 34,627 crore of tax revenue / 0.2 per cent of consolidated fiscal deficit of states," said Ecowrap. On the other hand, if the Centre cuts the excise by Re 1, the loss of revenue will be to the tune of Rs 10,725 crore for every Re 1 cut in central excise and the amount will become twice if it cuts the excise duty by Rs 2. This will push up the deficit of Centre, unlike states, it added. Petrol price has been hiked by Rs 3.64 a litre and diesel by Rs 3.24 in Delhi since state-owned oil firms ended a 19-day pre-Karnataka poll hiatus to resume daily price revision on May 14. The prices are at an all-time high.

States can cut petrol price by Rs 2.65/litre by giving up additional gains: Report

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Indian government slashes petrol, diesel prices by Rs 2 per litre

States can cut petrol price by Rs 2.65/litre by giving up additional gains: Report