Government Contemplating Petrol and Diesel Price Reduction Ahead of 2024 Lok Sabha Elections

Government Contemplating Petrol and Diesel Price Reduction Ahead of 2024 Lok Sabha Elections

Despite no decrease in international oil prices, the Indian government has made a significant decision to provide a subsidy of 200 rupees per LPG cylinder, bringing considerable relief to the general consumers. Beneficiaries of the Ujjwala scheme will now receive double the benefit, receiving a discount of 400 rupees on every cylinder.

Market experts believe that the government also has the option to reduce petrol and diesel prices. If implemented, this move could bring substantial relief to the middle-class consumers during the festive season. It could also aid in tackling the issue of inflation. The significant question arises as to why the government opted to provide substantial subsidies on gas prices even after there was no decrease in international oil prices.

Energy expert Narendra Tanjea commented to Amar Ujala that international oil prices have remained high for an extended period. Due to external pressures, there has been a reduction in oil prices, and currently, they are around 80 dollars per barrel. However, despite the reduction in oil prices, oil companies have not decreased the prices of petrol and diesel. This has helped these companies enhance their balance sheets. Given the current situation of oil companies’ balance sheets, considering reducing oil prices is a feasible option for the government.

The reduction in cylinder prices will provide affordable cooking gas to common consumers. Similarly, if oil companies reduce petrol and diesel prices, it will offer significant relief to general consumers. Petrol and diesel are commodities with a direct impact on the prices of other goods. Lowering their prices would reduce freight costs for goods transported by trucks, leading to cheaper goods. In essence, if petrol and diesel prices decrease, it will lead to lower prices for various commodities and benefit consumers.

The most pressing concern for the government currently is tackling inflation. However, if the government reduces prices of petrol, diesel, and gas, and this reduction has a cascading effect on other commodities, it could achieve substantial success in curbing inflation. This move would provide relief in the fight against rising prices.

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