NEW DELHI: State-owned oil companies have decided to slash the prices of petrol and diesel by approximately Rs.2 per litre starting 6 a.m. on Friday.

Following this adjustment, petrol will be retailed at Rs.94.72 per litre in the national capital, down from the previous rate of Rs.96.72. Similarly, in Mumbai, Kolkata, and Chennai, petrol prices will see a drop to Rs.104.21, Rs.103.94, and Rs.100.75 per litre respectively, marking reductions of Rs.2.10, Rs.2.09, and Rs.1.88 per litre. Presently, these cities sell petrol at Rs.106.31, Rs.106.03, and Rs.102.63 per litre correspondingly.

The Union Ministry of Petroleum and Natural Gas announced the price revision across the country through its social media platform, X (formerly Twitter), on Thursday. According to the ministry's tweet, diesel prices will decrease to Rs.87.62, Rs.92.15, Rs.90.76, and Rs.92.34 per litre in Delhi, Mumbai, Kolkata, and Chennai respectively, reflecting reductions of Rs.2, Rs.2.12, Rs.2, and Rs.1.9 per litre.

This reduction comes just ahead of the anticipated announcement of general election dates by the Election Commission of India.

The Petroleum Ministry, via its tweet, highlighted that the decrease in petrol and diesel prices would enhance consumer spending and reduce operational expenses for over 5.8 million heavy goods vehicles, 60 million cars, and 270 million two-wheelers running on diesel across the nation.

Moreover, the ministry pointed out that the lowered prices would benefit citizens by increasing their disposable income, fostering tourism and travel sectors, curbing inflation, and reducing costs for farmers operating tractors and pump sets.

There has been speculation about a price cut in recent months, with reports in Mint on March 12 suggesting that petrol pumps were operating with minimal stock in anticipation of a reduction.

Under the dynamic pricing mechanism based on international crude prices, oil marketing companies are responsible for determining retail fuel prices daily. However, prices remained unchanged since May 2022 following a government announcement of excise duty cuts on both fuels.

This move is one among several relief measures undertaken by the government ahead of the enforcement of the model code of conduct for the Lok Sabha polls. Just a week ago, the government had announced a Rs.100 reduction in domestic cooking gas prices and extended the Rs.300 subsidy for LPG cylinders to beneficiaries under the Pradhan Mantri Ujjwala Yojana for the upcoming fiscal year (FY25), with an expenditure of Rs.12,000 crore.

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