Finally there is more news to rejoice regarding petrol prices. We had yesterday reported that the government plans to reduce fuel prices in India prior to Diwali. Oil companies have gone forward and have reduced petrol prices effective midnight on 15th October.
Individuals owning petrol vehicles will surely rejoice with the price being reduced by a rupee. On the downside the diesel prices have not been reduced and is very close to petrol now. The Government promises to soon take action regarding this situation by a Cabinet and oil company officials.
The reduction in fuel prices has been moved ahead owing to Assembly Elections in States of Maharashtra and Haryana. A dip in diesel prices is most likely to be witnessed post the elections in the two states.
Oil companies claim the diesel prices could be reduced to maximum of Rs. 2.50, instead of the earlier claim of a Rs. 3 reduction. This will be the very first reduction in diesel prices in a period of four years and will be warmly welcomed.
The prices of petrol in Mumbai will be reduced to Rs. 74.46 per litre compared to Rs. 75.73, however, the prices can vary as VAT and other taxes are applied. The reduction in petrol prices have been reduced by a rupee across India from midnight.
The main reason for a decline in fuel prices is not the Government and any special scheme. The international prices of crude oil has been on a gradual decline, which has provided relief from exuberant fuel prices in India. These factors are sure to benefit the ruling government and should make them popular with most of the population.