Big Fuel Price Cut Expected Ahead of 2024 Lok Sabha Elections: Reports

In a development with potential political ramifications, sources within the Union Finance Ministry have confirmed to News18 that a substantial cut in fuel prices is on the horizon, months ahead of the 2024 Lok Sabha elections. 

According to various reports, the anticipated reduction could be as significant as Rs 10 per litre, providing relief to consumers grappling with high fuel costs.

The forthcoming price adjustment is attributed to the recent decline in international crude oil prices. Insiders reveal that the Union government is strategically planning this move to address public concerns and garner positive sentiment in the lead-up to the elections.

Notably, in May 2022, the central government had already taken steps to alleviate the burden on consumers by reducing the Central Excise Duty on petrol and diesel by Rs 8 and Rs 6 per litre, respectively.

Currently, in Delhi, petrol is priced at Rs 96.72 per litre, while diesel is at Rs 89.62 per litre. In Mumbai, the prices are even higher, with petrol at Rs 106.31 and diesel at Rs 94.27 per litre.

The Modi government claims credit for shielding common citizens from global oil price volatility. In response to an unstarred question in the Rajya Sabha, officials highlighted data from October 2021 to October 2023, demonstrating a 1 per cent point drop in diesel prices in India, while other countries experienced a rise.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, credited the Modi government's decisive steps for the reduction in oil prices in India. He stated, "Worldwide the prices went up around India by 70-80 per cent, in North America by 40-50 per cent, India prices came down by 5 per cent  that’s because of the decisive steps PM Modi has taken."

Puri further emphasised that the BJP-ruled states are managing fuel prices effectively by reducing VAT, contrasting it with opposition-ruled states experiencing a visible rise in prices.

As the country awaits the official announcement, the potential fuel price cut could significantly impact public sentiment and political dynamics in the run-up to the 2024 Lok Sabha elections.