India News: After a really prolonged time, petrol and diesel prices in India have seen their first dip in a year. Petrol prices fell by Rs.0.18 paise and diesel prices fell by Rs.0.17 paise per litre. In Delhi, petrol prices fell to Rs.90.99 from Rs.91.17 and diesel prices came down to Rs.81.30 per litre from Rs.81.47 per litre.
Though the price reduction may not be that much of a relief to consumers and a common man, this price drop has to be noted as it has been a year since there were any reductions in petrol and diesel prices. The price drop is mainly due to the fall in Brent crude oil globally and partly due to the centre and state’s reduction of their respective taxes on the fuels.
The price of petrol and diesel may vary back and forth depending on the states of the country and their incidence of tax reduction. Note that the last reduction of petrol and diesel prices in the country was around March 2020, as the country was bracing for a lockdown and when Brent Crude themselves were in an all time low.
Over the past year petrol has seen a huge jump in prices by at least Rs.21.58/ litre and diesel by at least Rs.19.18/ litre. Recently in the past months, since the beginning of 2021, petrol and diesel have even crossed Rs.100/ litre mark in parts of states like Rajasthan, Madhya Pradesh and Maharashtra.
There were calls and protests against the government to reduce the prices of fuels as it has been too heavy on the finances of the common man. The government even came forward to clear any expectations of bringing fuels under GST umbrella, which might result in good price drops in case it had happened. Taxes on petrol and diesel have been the governments’ biggest source of income for a long time.
But since the announcement of election polling dates for states like West Bengal, Tamil Nadu, Assam, Kerala and Puducherry prices of fuel has been on a freeze as any further price rise might result in election backlash for ruling governments of the states.
As mentioned earlier, prices reductions are very much driven by price drops in global Brent Crude oil that fell by $3, from $60/ barrel to $57/ barrel.