Hope for Relief as PM Modi Government: Breaking News In the coming year, Indians might experience relief at the fuel pump, thanks to potential reductions in petrol and diesel prices. The government, led by PM Modi, is reportedly contemplating requesting oil marketing companies (OMCs) to lower fuel prices.
This news comes after a hiatus of over a year and a half without any price adjustments, with the last reduction occurring on May 21 the previous year when Finance Minister Nirmala Sitharaman slashed excise duty on petrol by Rs 8 and on diesel by Rs 6.
Petrol and Diesel Price Relief
The optimism for lower fuel prices in 2024 stems from a decrease in international crude oil prices during 2023. OMCs like Indian Oil (IOC), Hindustan Petroleum (HPCL), and Bharat Petroleum (BPCL) may play a pivotal role in bringing relief to consumers. Reports suggest that the expected reduction in petrol and diesel rates could be in the range of Rs 8-10 per litre.
OMCs Profits Signal Positive Shift
However, the details of who will bear the impact of this rate cut remain unclear. One possibility is that the government might lower excise duty to offset the reduction, or OMCs could absorb the impact by accepting a hit on their marketing margins.
Currently, OMCs are enjoying profits of Rs 8-10 per litre on petrol and Rs 3-4 per litre on diesel. This is a significant turnaround from the challenging times in 2022 when OMCs faced peak losses of Rs 17 per litre on petrol and Rs 35 per litre on diesel.
PM Modi: Fuel Price Impact
The potential reduction in fuel prices has already made waves in the stock market. On the last trading day of 2023, shares of OMCs experienced declines. Indian Oil saw a decrease of over 2%, trading at Rs 130.45, while HPCL faced a downturn of around 4%, settling at Rs 401.60. Similarly, BPCL witnessed a decline of about 3%, closing at Rs 453.05.
As these developments unfold, it’s essential to stay tuned to reliable news sources for the latest updates on any official announcements regarding changes in fuel prices and government policies under the leadership of PM Modi.
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