There was no change in the prices of petrol and diesel for a long time, but now suddenly there has been a huge decline in their prices. This news has brought great relief for the common man. The government has taken this decision due to a fall in international prices of crude oil. New prices of petrol and diesel have come into force since 24 January 2025.
This step will not only provide relief to the common people, but it is also expected to curb inflation. Prices of many goods can decrease due to low transportation costs. Let’s know in detail about this big change.
New prices of petrol and diesel
According to the new prices implemented from 24 January 2025, the price of petrol has been cut by Rs 2 per liter and diesel by Rs 1.50 per liter. This deduction has been implemented across the country. However, prices in different states may vary slightly due to tax imposed at the state level.
Petrol-diesel price deduction overview
| Description | Acquaintance |
| Deduction date | 24 January 2025 |
| Petrol cut | 2 rupees per liter |
| Diesel cut | Rs 1.50 per liter |
| Applied area | All India |
| Cause of deduction | Crude oil prices fall in international market |
| Beneficiary | General public and business |
| Effect | Expect a reduction in inflation |
New Fuel Rates in Major Cities in major cities
According to the new prices, which came into force from 24 January 2025, the prices of petrol and diesel in major cities of the country are as follows:
- Delhi: Petrol – Rs 92.72/liter, diesel – Rs 86.12/liter
- Mumbai: Petrol – Rs 101.44/liter, diesel – Rs 88.47/liter
- Kolkata: Petrol – Rs 101.94/liter, diesel – Rs 89.26/liter
- Chennai: Petrol – Rs 98.85/liter, diesel – Rs 90.94/liter
- Bengaluru: Petrol – Rs 100.86/Liter, Diesel – Rs 87.44/Liter
Reasons for Price Reduction
This decline in petrol and diesel prices has occurred due to many reasons:
- Crude oil prices fall in the international market: Crude oil prices have been around $ 80 per barrel in the last few months, earlier above $ 100 per barrel.
- Rupee of rupee: The exchange rate of the rupee has improved against the dollar, which has reduced import costs.
- Government’s decision: The central government has decided to cut excise duty to provide relief to consumers.
- Oil companies margin: Government oil companies have contributed to this price subtraction by cutting their margin.
Impact of price deduction
This cut in petrol and diesel prices will have a widespread impact:
- Control of inflation: Reduction in fuel prices will reduce transportation costs, which can reduce the prices of many goods.
- Relief to the common man: Everyday expenses will decrease, which will increase the savings of people.
- Businesses benefit: Businesses will benefit from the cost of transport and logistics.
- Economy speed: low fuel prices are expected to increase production and consumption, which can speed up the economy.
State-wise petrol and diesel prices
VAT is applied at different rates on petrol and diesel in each state, so prices may vary. New prices applicable from 24 January 2025 in some major states are as follows:
- Uttar Pradesh: Petrol – Rs 92.65/liter, diesel – Rs 85.76/liter
- Maharashtra: Petrol – Rs 101.31/liter, diesel – Rs 88.77/liter
- Gujarat: Petrol – Rs 92.08/liter, diesel – Rs 85.82/liter
- Rajasthan: Petrol – Rs 103.94/liter, diesel – Rs 90.76/liter
- Madhya Pradesh: Petrol – Rs 102.45/liter, diesel – Rs 89.44/liter
Fuel Price Determination Process
It is also important to know how petrol and diesel prices are fixed in India:
- International Prices: International prices of crude oil are the original basis.
- Exchange rate: The rupee’s exchange rate has an impact against the dollar.
- Central Tax: Excise duty and other tax imposed by the central government.
- State Tax: VAT and other tax imposed by state governments.
- Dealer Commission: Commission given to petrol pump owners.
- Oil companies margin: Benefits of government oil companies.
Tips to Benefit from Price Reduction)
Some suggestions to avail maximum benefit of new low prices:
- Large purchase: If possible, buy more quantity of fuel at a time.
- Selection of time: Fill the fuel in the morning or evening when the temperature is low.
- Maintenance of the vehicle: Regular servicing reduces fuel consumption.
- Driving style: Driving at slow and stable speed.
- Right tire pressure: Fill the right air in tires, this increases mileage.
Future price predictions
Experts believe that petrol and diesel prices may remain stable for the next few months. However, many factors can affect these prices:
- Global political situation: Increased tension in the Middle East may increase prices.
- Demand and Supply: The decisions of oil producing countries will affect prices.
- India’s economic policies: Government’s tax policy decisions will be important.
- Environmental policies: Moving towards clean fuel can affect prices.
Price deduction on environment (Environmental Impact of Price Reduction)
Lower fuel prices can have mixed effects on the environment:
- More use of vehicles: Cheap fuel can increase the use of vehicles, which can increase pollution.
- Electric vehicles bearing: Low fuel prices can affect the demand for electric vehicles.
- Impact on industries: low fuel costs can increase production, which can increase carbon emissions.
Disclaimer
This article is only for informative purposes. Petrol and diesel prices can change depending on market conditions and government policies. Please contact authorized sources for accurate and updated information. Writer or publishers are not responsible for any error or omission. Take all the decisions at your discretion.
