The newly elected Government of India is going out of its to impress its countrymen. They recently announced the successful entry into Mars orbit, which has been a huge achievement. The Oil Ministry had recently refrained itself from hiking fuel prices prior to elections.
Now we hear that the Government of India could slash diesel prices by Rs. 2, within the next week. The price of petrol is also expected to be reduced considerably. Elections are scheduled to be held in Maharashtra and Haryana in the coming days.
The reduction in fuel prices are expected to boost ruling parties chances of winning state elections as well. This will be the first reduction in price of diesel since 2009. The Government has planned a reduction of almost Rs. 2 a litre, a mammoth decrease.
Currently the diesel price in India is being judged at Rs.2 per litre, higher than the market price. The slash will bring it on par to its market value, thus benefitting customers of India. Petrol is expected to be cheaper by 50 paise and not more.
A BJP representative told source, "The net impact of petrol and diesel price cuts will be in favour of BJP, which is expecting to win Maharashtra and Haryana because of Modi wave and anti-incumbency factor."
The previous Government had initiated a plan to increase diesel prices slowly and steadily. This move was made to bring diesel prices on par to the market and to ensure oil companies do not face losses. However, the current Modi-led Government has decreased the fuel prices, more than increasing it.