Petrol, Diesel To Get Cheaper? Fuel Rates May Drop by Rs 6 to Rs 11 Ahead of Lok Sabha Elections 2024

The upcoming Lok Sabha elections are just a few months away. Therefore, the Narendra Modi government is trying to appease the voters in India. Ram Mandir in Ayodhya was inaugurated by Prime Minister Narendra Modi after he also announced the Suryoday Yojana related to solar energy for citizens across the country. 

According to the report, Indian oil companies are benefiting from falling crude oil prices. Hence, there is a possibility that the price of petrol and diesel may reduced. As per ICRA estimates, OMCs are getting Rs 11 per litre more on petrol and Rs 6 per litre on diesel compared to international production. Just a few months after the September 2023 major cut, petrol trading margins improved. So, there was an improvement in diesel margins after October, said ICRA Limited Group Head Girish Kumar Kadam, as reported by Business Today.

ICRA feels that fuel reduction is currently possible due to this increased margin. If crude oil prices remain stable, petrol and diesel prices may come down. This price reduction can be reduced from Rs 6 to Rs 11 per litre. Meanwhile, earlier in May 2022, there was a major cut in fuel prices. The opposition accused the central government of cutting the fuel rates ahead of assembly elections in some states.

80 Dollars Per Barrel

Currently, the price of crude oil in the world market is less than 80 dollars per barrel. This is in part due to the expected recovery of Libyan oil production in September and unaffected Iraq production despite unrest.

Current Fuel Rates

Currently, the price of petrol in Delhi is Rs 96.72 per litre. So, diesel is at Rs 89.62. In Mumbai, the financial capital of the country, the price of petrol is Rs 106.31 per litre, and the price of diesel is Rs 94.27 per litre.