Will petrol diesel prices increase? Govt takes this measure to prevent prevent an increase
The Central Government has reduced the excise duty levied on petrol and diesel by Rs 10. The duty on petrol has been lowered from Rs 13 per liter to Rs 3. Meanwhile, the duty on diesel has been completely eliminated—that is, reduced to zero. The government has taken this step to prevent an increase in the prices of petrol and diesel.
Oil companies are incurring huge losses
Due to the conflict between Israel and Iran, crude oil prices have surged from $70 to over $100 per barrel. Consequently, oil companies are incurring losses. According to Petroleum Minister Hardeep Singh Puri, fuel prices globally have witnessed an increase ranging from 30% to 50%. In India, oil companies are currently incurring a loss of Rs 24 per liter on petrol and Rs 30 per liter on diesel. The decision to reduce taxes was taken specifically to alleviate this financial pressure on the companies.
To mitigate these losses, the companies would have been compelled to raise petrol and diesel prices, thereby increasing the burden on the common man. Under these circumstances, the government has stabilized the prices of petrol and diesel by reducing the excise duty.